EUR/USD presently at 1.3260 is trying to steady after the fairly sharp sell-off seen this morning. The euro is being underminned by a number of factors at the present time, among them; general heightened risk aversion; poor economic data (evidence downward revision to Q-4/Q-3 GDP numbers this morning); ongoing speculation the ECB is close to introducing quantitative easing; and ongoing worries concernng the health of Eastern Europe. There are even some worries the ECB might intervene to weaken the euro, but personally I can’t see that myself.
Sources report that the BIS stepped into the market earlier buying EUR/USD in the 1.3240/45 area. Sporadic central bank purchases are serving to lend EUR/USD bouts of support, but its tenuous at best. Central banks of Korea and Russia were seen buying in Europe earlier today.
Technical support lies at 1.3220, resistance up at 1.3280/90.
