However, Reuters suggests it was fat finger. We agree and also feel that Hollande is being unnecessarily blamed.
This is because; talk of 'Hard Brexit' is in place for quite some time. Hence, Hollande's comments are not surprising and cannot or should not result in a kind of sell-off which we saw in Asia.
Moreover, the fat finger sell-off is being retraced. The spot has recovered to 1.2465 levels from the low of 1.1491 (Reuters low). Better-than-expected UK manufacturing production number could help the bird extend the recovery ahead of US non-farm payrolls release.
On the higher side, 1.2590-1.2630 is key resistance levels to watch out for, while on the downside round figures could offer support. On the hourly chart, 1.2423 and 1. 2388 could act as a support as well.