It’s month-end so it’s no surprise to see month-end flows driving the forex market today. The US dollar strengthened ahead of the London fix today and then quickly gave it back.
The timing of the move suggests it was flow-driven rather than fundamentally drive. If anything, there was a reason to sell the US dollar before the fix as consumer confidence data missed expectations.
The move was seen across the board with cable particularly volatile.
GBPUSD 10 mins