Why is EUR/USD selling off? The failure to sustain gains above 1.2700/25 is one very important reason.
Another important reason is that the market expected a wave of EUR/USD buying from the Bank of Korea today after they intervened to buy upwards of $2 bln in USD/KRW overnight, after it raised rates. Typical, Korea diversifies its reserves when it intervenes against the won by converting a significant chunk of the dollars bought into EUR and GBP (to a lesser degree).
Korea has yet to show its hand, but could at any time. Beware getting too beared-up.
