EUR/USD rallied as far as 1.25721 before falling back into a consolidation. Real money buying was in evidence after the 12:15 GMT fixing and there were some additional buyers after jobless claims came in slightly worse than expected but the usual combination of central bank reserve diversification and options-related selling helped cap the advance.
EUR/USD holds up well despite Bullard throwing cold water on the QE3 conflagration, saying the FOMC minutes were “stale” and that recent data has been more upbeat. Underscoring his comments was the upbeat Flash US PMI from Markit, which came in at 51.9 versus expectations of 51.2.
Small bids are seen in the 1.2530/35 area on dips near-term.
