Markets will quiet down shortly and traders will begin heading for the exits early, leaving the algos in charge for the afternoon as they make their way home for the holidays.
Unable to overcome resistance around 1.3420, EUR/USD has fallen back to the 1.3365 area, torn between firmer US interest rates on the one hand and stronger stocks on the other. US 10-year notes are 9 bp higher than opening levels around 2.80% and US equities are hanging onto 1.2% gains.
1.35353 is the 50% retracement of today’s 1.3284/1.3422 range and a likely area for EUR/USD to stall around this afternoon.
