EUR/USD edging lower as rate cut pondered

The euro is drifting lower in early Asian trading, commodity currencies are also sliding.

The ECB’s Coeure said a rate cut is “certainly an option” he expects to be discussed at next month’s meeting.The dovish comments were balanced by the growing liklihood that a country will ask the EFSF to buy bonds.

Under EFSF rules, the ECB must be consulted before the fund buys sovereign bonds. Mr Cœuré said the bank would be likely to back such a move because the borrowing costs were not a reflection of economic fundamentals.

Bids at 1.2625/30.