Central bank demand in the 1.2750 region from Russia and a turn to the topside in the S&P futures helped engineer a short-covering rally as US trading got underway. More buying from the nearly ubiquitous BIS was spotted at 1.2780. Heavy short-covering in EUR/JPY was seen along the way, dealers report. Offers begin in the 1.2850 region, dealers report and are stacked up to 1.2900. Stops -loss buy orders are mixed in above 1.2850, dealers say.
Now that dealers have had the chance to get short today, odds of a renewed EUR/USD rally are improved today. We trade now at 1.2820.
