A very quiet session for the euro this morning with no major developments out of the eurozone to have any significant impact on the market. In overnight dealings, the second day of Fed Chair Yellen’s testimony produced no surprises, while US New Home Sales were slightly higher than forecasts but saw a muted reaction. Remarks from the ECB President Draghi at the European Parliament also offered no fresh insight, stating the ECB saw risk of deflationary spiral pre QE, but added that saw the first signs of confidence in the real economy. Euro-dollar opened in Asia at $1.1359, pretty much in the middle of the overnight $1.1334 to $1.1388 range. The single currency spent the morning mainly in consolidation, trading an early low of $1.1358 before recovering again to $1.1371, and that was the extent of the move for the day, with euro-dollar last at $1.1366. Next hurdles for the single currency are seen as German consumer confidence and unemployment data, due later. Major support is seen at $1.1265, the 61.8% retracement of the $1.1098 to $1.1534 rise, initial resistance lies at $1.1395, the 76.4% retracement of the $1.1428 to $1.1288 fall.
