The euro opened at 1.1775 (8:30 am) in New York having fallen from the European high of 1.1811 to fresh nine year low of 1.1827 after the European Court of Justice Advocate General gave a non-binding approval to the European Central Bank's Outright Monetary Program, removing one procedural obstacle from the start of sovereign debt purchases by the central bank. The OMT program has never been used and the real objection to debt purchases comes from the Bundesbank and the government of Angela Merkel.
The New York open saw the release of very weak December retail sales numbers, -0.9 percent vs. expected -0.1 percent and the euro drove to 1.1846 within 20 minutes. Treasury yields gapped lower, the 10-year was off 4 basis points on the day at 1.86 percent, but at one time it was down 11 points at 1.78 percent.
The dollar showed stamina as Treasury yields gradually climbed to 1.82 percent, dropped back to 1.80 and rose again to 1.86 in the afternoon. The euro had faded to its startline at 1.1775 at mid-morning.
Trading was muted in the second half of the session but as Treasury yields again softened, the dollar lost ground after having reached 1.1813 just after the London close at noon.
The euro closed at 1.1789