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Forex pairs in this Article » GBP/USD (New York) - According to Research Analyst Gareth Berry at UBS, “The USD had a strong week as widely expected, and it is no surprise that the bulk of the buying happened on Thursday - the first trading session post Fed.”

On a daily basis it was one of the strongest dollar-buying days this year. However, we note that probably with the exception of the USD/CHF and GBP/USD, there was an absence of major liquidation flows and volumes were not outsized either. Looking at the EUR/USD for example, there was ample demand to buy amongst the asset management community heading into Wednesday, suggesting that pre-positioning for the Fed was not for a clear signal of tapering at all.

“These positions were reduced post-Fed, but as 3-month rolling USD positioning shows, there is plenty of scope for further dollar recovery. The USD/JPY ended the week largely flat though Thursday was a rare buying day in which every single client category were bidders.” Berry adds.
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