Dealers say the BIS (Bank for International Settlements) was spotted on the bid in EUR/USD toward the lows prompting a bout of short-covering into the 1.2790s. Dealers have been reluctant to take on the central banks down here given the sharp 3 to 5 cent rallies seen from these levels in recent days.
Stops are building below 1.750 and 1.2700, dealers say.
