EUR/USD finds itself in the rare position as the second or third most-watched currency today, after relinquishing the pole position to USD/JPY during US trade and the pound in European trade.
The single currency was dragged higher by EUR/JPY late in European trade but never caught much of a bid of its own. From 1.2890 just after noon in NY, EUR/USD has fallen back to the 1.2780 level. The selling accelerated after dipping back below the 1.2820 level.
US equities are giving back about half the gains seen earlier today on rumors that mark-to-market accounting may be suspended for banks. EUR/JPY has dropped to 116.85 from 118.90 just afternoon.
1.2760/70 is support on dips near-term. The BIS bought there this morning during the ECB press conference. Stops are seen at 1.2740/50 while bids protecting 1.2700 barrier options are eyed on the approach of that level.