EUR/USD had a very strong week, Opening in the 1.2730 area and reaching 1.3415 this morning. It is seeing some pre-weekend profit-taking after a strong run as well as on some slightly better than expected economic data today. Stripping out gas and autos, US retail sales were up in November and consumer sentiment has improved as well, suggesting Christmas may not be the retail disaster that was expected.
US equity markets are rebounding on the data as well as on signs that some manner of auto lifeline is in the works. EUR/JPY is in major recovery mode, as is USD/JPY as risk aversion eases.
EUR/USD trades at 1.3355 and USD/JPY ar 91.25. 122.25 is key resistance in EUR/JPY which trades now at 121.80 after downward spasm overnight.
