Transcripts of the monetary policymaking body of the Federal Reserve from 2002–2008.

That’s a great question. It has been asserted, without proof, that some of the major central banks moved into euros very aggressively in December 2004. I don’t know whether that’s true, but there is some evidence to suggest that it might have been the case and that in somewhat thinner markets it had a pronounced effect in December, which then got reversed in the following January or February. It is hard to know exactly why that would have happened. If dealers see those flows, you will tend to get speculators who will follow it or try to front run it. I can’t say whether that’s happening now, though.

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