Just like the textbook tells us, the old area of support around 1.2785 is providing resistance on rebounds as the European session heads for the close. EUR/USD has seen short-covering off 1.2723 lows with dealers reluctant to tangle with the Asian central bank that is rumored protecting a barrier at 1.27. US equities have climbed of their lows amid hints from the FAB that there may be some modest flexibility on mark-to-market policies regarding illiquid assets.
USD/JPY demand is rumored at the upcoming 16:00 GMT, now just minutes away.
