The Irish Government agreed overnight to allow a full parliamentary vote on the EU/IMF bail-out package and this news will probably keep the EUR on a bearish footing for the next few sessions. Other potentially bearish factors are the Chinese rate hike (which is pretty much built into the market) and general risk-aversion, as it’s Friday.
On the plus side for the EUR, the market is tending towards being short so it’s liable to more bouts of short-covering, especially before the weekend.
I’m suggesting a 1.3170/1.3270 session range with a mild bearish bias.
