EUR/USD is beginning to correlate with the S&P again after trading in stark opposition to equity moves earlier in the day. the Index is withing 2 points of session lows and trades 1.4% lower on the day.
EUR/USD has drifted off to the 1.2235 level after stalling at 1.2388 on the London close.
1.2300 should provide some support on dips near-term.
By the by, for all you doubting Thomases out there, we heard there was significant short-covering from model funds this morning. My guess is the trend-followers are covering shorts, as suggested earlier in the week.