Got ‘em on the run

EUR/USD shorts are scrambling as surging Spanish yields, a denial from the Germans on the ESM getting ECB funding and upbeat US data delaying QE in all likelihood, the single currency continues to gain.

Offers return toward 1.2350, traders say. Key near-term will be if we can establish a toe-hold above the 1.2325 level. the 61.8% retracement of the Friday/Monday drop.

USD/JPY bids from Kampo, the Japanese institutional investor, are rumored at 78.00 in USD/JPY. Heavy stops are eyed on a break of 77.70, traders relay.