Closed in NY Wednesday at $1.3228 as rate extended its corrective pullback from intraday highs at $1.3308. A stalling in Fiscal Cliff talks, with Pres. Obama warning that he will veto the Republican ‘Plan B’, acted to dent the recent risk on tone. Late NY, early Asia sales of yen pairs by US speculators acted to provide further weight into the overnight session, with Asian traders also noting a negative reaction to a FT interview with the Greek FinMin where he suggests 2013 is a make or break year for his country. Euro-dollar was pressed to extended lows of $1.3187 but quickly picked up demand interest which allowed it to reappear back above $1.3200, though upside progress was countered as rate met sell interest placed into $1.3230. Despite the overnight pullback traders still note some buoyancy as Eurozone peripheral yields continue to ease. Bids seen from $1.3190 to $1.3180. Talk that recent sovereign demand between $1.3170-50 has been pulled. Offers $1.3230/35, $1.3250/65 ahead of $1.3280. Stronger interest remain $1.3300/10.
EasyForexNews Research Team