The 1.2565 area is solid support near-term while more lies down at 1.2420/25. should those levels give way, we’re back to 1.2330 trend lows.
There has been talk of Chinese buying of EUR/USD several times today. They were in earlier as1.2675 and most recently at 1.2610, dealers report. Eastern European accounts were earlier sellers of EUR/GBP, we’re told.
Cable has been in demand from Mid-East buyers today but that has not done the beleaguered pound much good. Looks like last week’s GBP rally was more about a one-off M&A flow than any fundamental shift in outlook.
