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EUR/USD has come under renewed pressure in the wake of weaker than expected US retail sales. Downcast comments from Philly Fed president Plosser are contributing to risk-averse mood this morning as well. Plosser sees a deep contraction in Q4 of 2008 and through the first half of 2009 before any improvement, which is pretty much the consensus view.
EUR/USD has fallen as low as 1.3101 and is now consolidating losses. Offers reside at 1.3160 and 1.3200 near-term.
1.3070/80 is key support, the former range-top before the Fed started its quantitative ease policy.
