With EUR/USD backing away after stalling in the mid-1.3040s, the inevitable talk of central bank sales coupled with rumors of fresh exotic triggers at 1.3050 are making the rounds. Though there is no confirmation at present, the range bound nature of the market would make this highly plausible.
Talk of 1.29/1.31 DNTS with lumpy payouts are making the rounds as well. An analysis from one of the high-profile consulting shops that caters to the leveraged community suggests a hawkish tone from Bernanke tomorrow, another factor that helped stall the EUR advance.
Upbeat Eurozone data keeps the ECB on a tightening path for the foreseeable future while the Fed is expected to stay sidelined but with a clear bias to tighten given tight labor markets. This argues for more range trade ahead until the status quo shifts.
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