EUR/USD has recovered to the low 1.34-teens, aided by buying from central banks ans well as by a pause in the EUR/GBP selling that crunched that pair earlier in the day.

Poor Eurozone service-sector ISM data along with tumbling inflation has the market scrambling to price in another 50 bp rate cut from the ECB next week. This could limit rebounds in both EUR/USD and EUR/GBP today. We are edging toward congstion between 1.3430 and 1.3475 as we write. A small short with a stop at 1.3480 fro a return to the 1.3350s looks like a safe play near-term. Lousy US ISM data is a given.