Another unexciting day for the euro as it started at $1.3681 this morning in the Asia-Pacific timezone, following a $1.3663 to $1.3692 range overnight in the US. It was confined to a very narrow range between $1.3676 and $1.3682 in the early hours of the session as the market showed little adverse reaction to last night’s announcement from Italian PM Letta that he will resign today. Euro-dollar was holding near the top of that amid a better risk environment when aussie-dollar jumped on the Chinese inflation data. That inspired a euro-dollar rally as well, with the pair breaking higher to a $1.3691high. Dealers said talk of clusters of euro offers around the $1.3700 mark kept buyers from becoming too ambitious especially head of the weekend. There was also talk of buy-stops sitting fruther up should $1.3700 give way later in the global session. Euro-dollar was last at $1.3681, right where it had started the session today. Initial support has developed at $1.3656 with a close below this needed to ease the bullish pressure a little. Overall a close back below the $1.3619 support is needed to shift focus back to the $1.3476 Feb 3 low
