Thursday’s stunning late-day rebound in equities and the allied rally in commodity currencies and carry trades faltered in Asia overnight and the market has slipped back into consolidation mode. 1.2650, a key resistance level on the way back up is now providing support on the pullbacks.
Retail sales are the next focus for the market at 8:30 along with a Bernanke speech in Frankfurt at an ECB conference. 1.2850 and 1.2925 are topside levels to watch.
