FXStreet (Delhi) – Research Team at BBH, notes that the European economic data was better, but steep equity losses are still being inflicted in EUR and GBP.
Key Quotes
“Initially, the euro continued its pre-New Year retreat, falling to about $1.0830 in Asia before trading more than a cent higher to reach a peak just below $1.0950 in early Europe. However, the momentum has faltered in Europe and a push back toward $1.0880 in North America would not be surprising, given the intraday technical readings.
Sterling followed the same general pattern as the euro, but has fared somewhat better in Europe despite the disappointing manufacturing PMI. The December reading slipped to 51.9 from a revised 52.5 level in November (initially 52.7). This is the lowest reading since September, and is the second consecutive decline. The market had anticipated a small gain to 52.8. In other reports, the UK showed a small rise in net consumer credit (November), and an increase in mortgage approvals and lending.
Sterling was sold from near $1.4840 to almost $1.4720 on New Year’s Eve and was briefly pushed below $1.47 in Asia today. It rebounded to almost $1.4820 in the European morning before running out of steam. Intra-day support is seen in the $1.4740-$1.4760 area.”
(Market News Provided by FXstreet)