15.09.11

Coordinated bank intervention see’s dollar sold off across the board

The greenback has tumbled against the pound and euro after coordinated bank action to inject USD liquidity into global markets. Five central banks announced measures to provide liquidity in US dollars in operations with a maturity of 3 months until the end of the year. EUR/USD gained over a cent in 10 minutes to see the currency pair hit $1.3937, and in cables value the pound managed to gain a hard fought half a cent for GBP/USD to trade over the $1.5850 level. The downside of this move has been for sellers of sterling versus the euro as the single currency posts gains against other crosses. GBP/EUR has now fallen below the 1.14 handle, touching 1.1376.