EUR opened in Asia this morning at $1.3050 after highs in NY of $1.3077 following yesterday’s stronger PMI data from China and a rise in global PMI to 50.8 in December. Equities picked up as some tentative risk returned along with firmer crude prices on further tensions between Iran and the US. EUR rose in early trade today to $1.3058 before EUR/JPY, and later some macro EUR/USD sales, led a push lower through large US bank bids at $1.3045 to $1.3022. USD/JPY hit highs of Y76.82 before heading down on EUR/JPY sales to Y76.62, with the cross slipping back under Y100 to Y99.84 from early highs of Y100.25. Real money seen as the buyers of yen in both pairs. GBP eased from $1.5658 to $1.5627
cushioned by a falling EUR/GBP from stg0.8345 to stg0.8332. AUD fell with the EUR from $1.0381 to $1.0323 with traders hesitant to challenge a $1.0400 barrier and 200 day MA at $1.0416. Profit taking in EUR/AUD also adding to the weakness. Focus today on German 10yr bund auction and EU services PMI. Risk remains mixed following a UK Guardian story that Greece could be forced out of the Euro in 3 mths barring a new bailout.
EasyForexNews Research Team