EUR/USD is displaying real weakness today, unable to garner much more than a 40 pip rally off the lowest levels seen in since the Fed began to buy Treasuries a month ago. Unwinding of overseas bond holdings by Japanese investors, particularly in Europe, have weighed heavily on markets today.
1.3000 barrier options are looking increasingly vulnerable as the day wears on. A sustained break of 1.3000 targets a return to the 1.2750 area next week.
UPDATE: Sources tell us there is a lumpy bid in the 1.3024/25 area; 1.3026 the low thus far.
