Here’s the roller coaster action in EURUSD on Wednesday:
The post lunch swings in the euro-dollar cross-rate were seemingly being fueled by a series of unsubstantiated rumours.
First, that the ECB was ready to intervene in the market;
Second, that the Swiss National Bank had intervened;
Third, that the Greek Finance minister has said Greece was considering leaving the euro.
That last piece of scuttlebutt has been categorically denied by a Greek government spokesman.
Via Reuters:
RTRS – GREEK GOVT SPOX CATEGORICALLY DENIES MARKET TALK THAT GREECE WOULD CONSIDER LEAVING EU, EUROZONE
We might add that the rumour was being zapped around City emails in the guise of a purported news agency flash — although remaining sourceless of course.
Which links into another market rumour that a hedge fund long euro may have been behind the tittle-tattle.
More on that as we have it.
But isn’t it slighty ironic that on a day when Germany declared on war on speculators rumours like this should be doing the rounds?
Related links:
FX gyrations - FT Alphaville
Now, about those DEM rumours - FT Alphaville
The Wolfpack returns – FT Alphaville