1.3740 traded on the lower than expected headline in EUR/USD and two minutes later we slipped to 1.3692. Now we are back around 1.2710 and we will probably trade fairly close to present levels through the 15:00 GMT options cut as there is said to be a large expiry at that level.
Near expiry, options move in and out of the money, forcing market markers to adjust hedges. This tends to price prices close to the strike, all else being equal.
