Euro-Dollar (EURUSD) was unable to regain 1.2600 after the sharp drop in the currency this morning. EUR-USD gapped from NY closing levels of 1.2700 to 1.2560 after the G20 failed to offer any concrete solutions, last week's poor Euro-Zone GDP data and in the wake of weekend comments by ECB Stark and Bini Smaghi of more weakness in the Euro-Zone economies ahead. EUR-USD fell to lows of 1.2513 before the bounce in the Nikkei helped EUR-USD recover to highs of 1.2597 but EUR-USD was unable to rise above that level, drifting back to 1.2563 this afternoon. Offers are eyed at 1.2600 and 1.2640 with bids at 1.2500 and 1.2450 reported. The market widely believes that the ECB is behind the curve on cutting rates, and this remains a factor weighing on the EUR. Even the IMF head Strauss-Kahn today said that the ECB has further scope interest rates.