The euro traded in a $1.3505 to $1.3547 range last night in the US and then started in Asia at $1.3520. The pair showed a less-dramatic response to the debt ceiling talks news, briefly rising to $1.3533 as the dollar weakened and then easing back to $1.3520 as Asian markets got underway. It continued within that range in the early hours of the day, and eventually broke through the early high as euro-yen rallied on risk-on trades. Euro-dollar continued on to a high of $1.3544 but failed to break new ground above the overnight peak. It backed off a bit in the afternoon as the market locked its radar on developments out of Washington, and was last at $1.3534. Below $1.3500, the pair is seen testing the post-FOMC low of $1.3486 traded on Wednesday but below that, strong support is believed to have formed around the $1.3450 mark. The topside meanwhile contains interest to sell euro-dollar, starting mostly from $1.3580 to $1.3600/07.
