EUR/USD: Rebound Reaches 1.2695/00 before Stalling

EUR/USD's rebound from a visit to Wednesday's range low near 1.2670 reached the 1.2695/00 area before stalling. Dealers point to the usual central bank buying on dips as well as a rebound in EUR/JPY from the 149.00 area as helping prompt the rebound. Trichet was suitably hawkish at his press conference, all but promising a December rate hike at a minimum. Firmer US yields and hopes for a decent employment report are offsetting some of the hawkish tone from the ECB. The EUR/USD stalemate continues with prices trading now at 1.2690.