EUR/USD: Sovereign Bids Slow Slide

Dealers report fresh buying interest from Eastern European accounts on weakness below 1.2970 this morning. Stops are building below the 1.2940 level, they also report, as short-term traders lean against options-protection and central bank reserve diversification for comfort. Some fear prices could slide later in the day as accounts that set stops below 1.2980 on a closing basis come to market to offload stale EUR/USD longs. EUR/USD trades at 1.2971.