The euro opened for the New York market at 1.3749 (8:00 am ET) near the low until that point of 1.3745, as sterling's stop led-fall through 1.6300 had kept the pressure on the united currency. Germany's considerably better than forecast ZEW survey (current situation32.4 vs. 29.0, expectations 62.0 vs. 55.0) at 5:00 am fostered only the briefest pause in the selling of both currencies.
In front of the US CPI data at 8:30 am the euro traded in a tight 1.3746-58 range. The relatively weak inflation numbers (cpi 0.03% vs. 0.1%, core 0.15% vs 0.1% ), gave the euro a short burst to 1.3768 as subdued inflation and incipient disinflation are more likely to keep the Fed at its current $85 billion a month in securities purchases tomorrow.
The rally quickly ran out of energy as the positions accumulated above 1.3750 were reversed driving the euro to 1.3735. The December 10th low was 1.3734. From there a short surge brought the euro back to the opening level at 1.3749. A report that the U.S. Senate had the required votes to advance the budget compromise brought on further selling, budget stability is benefit to the economy and perhaps for a tighter Fed monetary policy and the euro dropped to its session and day's low at 1.3723.
The reverse from the low was swift, aided by stability in the euro/yen ahead of 141.00 and a still weakening dollar/yen which brought the euro back to 1.3759 just before the London close. Another rally in the afternoon gained 1.3775 after a snappy execution of minor stops above 1.3760. The euro closed at 1.3768.
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