EUR/USD appears to be in no rush to rebound after being slapped lower in US afternoon trade. the inability to extend gains above 1.4000 early i the session left the market quite long intraday and with the usual catalysts like firm stocks failing to work their magic on prices longs began to head for the exits. A report via Fox News of the US tracking a North Korean ship believed to be carrying weapons and nuclear materials, selling accelerated.
We slumped as low as 1.3870/75 as stops were triggered around 1.3940 and again below 1.3900. Middle Eastern buying was seen from the lows, traders reported.
1.38/1.40 looks to contain things in the near-term with choppy trade in between.
