A dull day for the euro after it opened in Asia at $1.1197, at the lower end of the overnight $1.1185 to $1.1378 range seen in offshore markets as falling European bond yields and better than expected US core inflation conspired to send the single currency lower. Early Asian action saw the euro consolidate some of the overnight moves, as it crept back up toward $1.1200. It broke through in early dealings and traded a high of $1.1214 before turning lower. The subsequent reversal was also fairly limited with euro-dollar bouncing off $1.1200 to take another stab at the earlier $1.1214 high. It last traded at $1.1213. Looking ahead, European data, in particular, German CPI will be keenly eyed. Initial euro-dollar resistance is noted at $1.1258 marking the 38.2% Fibonacci retracement of yesterday’s $1.1378 to $1.1185 fall, key support lies at the $1.1098 January and multi-year low.
