Poor durable goods data kept the euro supported overnight as it crept up to a high of $1.3673 in late NY session before Asia stepped in, it dived to $1.3649 after CBT hike rates in an unscheduled meeting. Risk sentiments improved as EM currencies rebounded after the announcement and saw initial strong buying interest in euro-yen from real money accounts, euro rebounded to $1.3668 before renewed selling interest in euro-yen sent the euro to fresh session low of $1.3648 in late morning Asia and it rebounds to current of $1.3655. After the rate hike event by the CBT, traders turn their attention to FOMC meeting, repositioning for a possible taper this Thursday. Talks of arising risk the German court may block the Bundesbank rescue for Southern Europe from media reports could weigh on the euro as Europe steps in. The euro hovering near the 50-dma at $1.3653, with medium offers seen at $1.3695/700 while demands & stops seen at $1.3625/20 levels.
