EUR/USD came back under pressure to hit European lows of 1.3901. Selling was noted from European interbank names and model funds from 1.3960, while option related sellers also came back to the fore amid reports of more euro put interest. One name dealt one month 1.3400 and July 9th 1.3410 also dealt in good size. A large U.S. house that is holding large 1.3800 strikes due tomorrow and Wednesday is getting some airplay, with spot expected to make a gradual move lower. The same name is also holding 1.3600 June 18th expiries, which should leave a sell on rallies theme. Real money names and Asian sovereign accounts are expected to maintain their interest to sell ahead of 1.4000, which should see the pair maintain its bearish technical picture.
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