It seems to me the market discounted the German Export miss this morning at 2am EST. If anything could throw German support (albeit behind closed doors) behind perceived looser policy it would be a threat to their prized export economy. It seems this could open the door to more openness to "talking down" the currency.
The pair has come within 1 pip of 1.31, rallying strongly through the end of the London session. Being cautious of tomorrow's FOMC minutes, I'm starting to get short EURUSD again in anticipation of a sub 1.30 weekly close.
