Dealers note talk of selling from the Bank for International Settlements on rallies in EUR/USD, with offers spotted in the 1.2615/20 region. I wouldn’t be surprised to hear that they are also buying dips ahead of key support at 1.2548.
In addition to the other matters on their plate, I suspect the ECB is very keen to avoid the appearance of a currency crisis as it struggles to figure out how to keep the European economy afloat without resorting to zero interest rates and without the resources of a sovereign state at its disposal. It would be extremely unpopular to rob Peter (German) to pay Paul (Ireland, Greece, etc.), even if such a structure existed.
EUR/USD trades mid-range at 1.2600.
