Flash: Market takes steps back to normality - Investec

FXstreet.com (Barcelona) - Lee McDarby of Investec Treasury feels that after a good few months of dollar driven movement and of course a few months of lulls for dollar buyers the market took large steps to return to ‘normality’ late into the London session and overnight.

Further, he adds that a further capitulation in market positioning led to broad based dollar weakness pushing GBP/USD through the 1.5600 level, offering new opportunities to buyers of USD who have recently been found wanting. He writes, “We have however seen some retracement this morning as the market takes a breath after the sharp moves seen yesterday . We have now moved back below 1.5600, resting around the 1.5550 level.”