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FXstreet.com (Barcelona) - Emmanuel Ng of OCBC Bank notes that yesterday was a day of consolidation as investors paused for breath. The JPY bounced smartly against its peers after the Japanese Economic Minister warned that excessive weakness would threaten import prices. The USD also garnered generalized support from somewhat positive data releases (positive readings from Dec retail sales but the Empire manufacturing index disappointed).

On other fronts, EUR also consolidated lower after the EU's Juncker warned that the euro was "dangerously high". Interestingly, the EUR-CHF continued to edge higher. Ng notes that "The EUR has been more attention to the ECB and assigning relatively less importance to actual underlying economic fundamentals of late." He finishes by stating that he doesn´t think that yesterday´s price action constitutes a game changer, although US fiscal cliff concerns may continue to loom larger in the coming weeks. He also notes the overnight warning from rating agency Fitch.

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