EUR/USD rallied close to the 1.3000 level after the US data but has since dipped back to the 1.2950 level. Central banks are all over the market today but showing little rhyme or reason to their activity today, as easily on the offer as on the bid. Case in point: one of the CB’s that capped EUR/USD in the 1.2970/80 area earlier in the session was an active buyer on the moves to the highs.
Dealers note rumblings of concerns rising over European bank holdings. The Telegraph says there is an EU dossier outlining GBP 16.3 trln in toxic assets on the books of European banks.
That might be a tad EUR/USD negative…UK bank holdings are apparently included in the toxic debt total so the pound could easily lose ground as well.
