EUR/USD: Only Modest Reaction to Poor Housing Reports

EUR/USD has firmed a bit in the wake of poor US housing data. Hawkish comments from the ECB's Papademos have been released on Dow Jones that more tightening is necessary if their outlook is confirmed. The Fed's Fisher welcomed EUR reserve diversification, saying it is not unhealthy. He also said a large shock is unlikely to displace the USD"s reserve role. EUR/USD trades quietly at 1.2778 after a rally to 1.2788.