Closed in NY at $1.3105, after recovering off pullback lows of $1.3095, after rate had been pressed down from extended post FOMC highs of $1.3184. Yen crosses came under pressure into the Tokyo fix, the pressure from this action extending EUR/USD pullback lows to $1.3077 before demand emerged ahead of reported bids placed at $1.3070. Rate recovered, helped in part by the sell off in USD/JPY as this pair broke back below Y77.00, touching a high of $1.3120. Rate then settled around $1.3100 as market awaited the European open. Rate currently trades around $1.3106. Market remains on Greek debt deal watch as the IIF continue meetings today, with Monday’s EU Summit looming on the horizon. Market therefore seen open to headline risk, with speakers due up in Davos (notably ECB Draghi at 1315GMT) as well as key US GDP data due for release at 1330GMT. Support remains in place into $1.3070, more toward $1.3050. Resistance remains in place to $1.3120 (55-dma, broke above Thus but closed back below), a break to open a move on toward $1.3135/45 ahead of $1.3160.
EasyForexNews Research Team