FXstreet.com (Barcelona) - EUR/USD edged higher in early
Wednesday's NY trade from Monday's close, printing fresh weekly
highs near 1.3255 in thin market conditions on the back of broad
USD weakness, save yen. The USD index printed a daily low at 79.42,
and last trades at 79.58, sitting relatively flat for the week. US
10 year bond yields are also nearly flat for the week, around
1.77%, capped below the 1.8% level.
US SP500 index remains under selling pressure following last
Thursday's crash to 1390 lows, currently near session lows above
1415 figure, while Asia-Pacific local share markets are mostly
showing green lights, with Nikkei and Hang-Seng index at fresh 2012
highs. Copper and Oil are both higher while Gold is so far flat for
Market focus shifts again to US 'fiscal cliff' talks as US Congress
and Senate will resume discussions on the matter later today, as
President Obama and Congressional leaders return from Christmas
vacation; many analysts believe it very unlikely to reach a deal
before year-end. Before any news from 'fiscal cliff' comes, US will
deliver unemployment claims data at 01:30 GMT, followed by New Home
Sales and CB Consumer Confidence at 15:00 GMT.
"The EZ debt market has calmed considerably and asset managers are
now looking at the very attractive yields available, rather than
worrying about default, and this is also driving funds into the
EUR," says FXWW founder Sean Lee, with Euro and Swiss Franc being
strongest currencies among majors for last 2 days, while Yen has
been the weakest.
From the technical view, "Resistance at 1.3300 continues to
suppress any bullish momentum as the EURUSD pair consolidates,"
says FXstreet.com Independent Analyst Richard Lee, adding: "Failure
to rise above the figure would prompt a decline to initial support
at 1.3165," the analyst concludes.