EUR/USD: Hawkish Poole Helps Blunt USD Dip

EUR/USD had been experience a modest rally, edging into the high 1.2520s but hawkish comments from the Fed's Poole seem to have stalled the rally for now. Poole bluntly says present inflation levels are too high and that it is important to get the current inflation rate down. We are likely to see inflation rates taper down, he says, taking some of the edge off the initial comments. Draconian measures will not be needed if inflation ebbs, he says. EUR/USD trades at 1.2525. Offers lie at 1.2540/45 and again toward 1.2585/90.