Home THE DAILY EDGE Forex Focus EUR/USD Performance Chart as at 12:00p.m. Singapore time, 30/11/2012
EUR/USD Performance Chart as at 12:00p.m. Singapore time, 30/11/2012 PDF
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Overnight, the euro experienced a rollercoaster session against the dollar, whipsawing around as leaders of the Democrats and the Republicans traded barbs over a lack of progress in the fiscal cliff negotiations. After some encouraging words from President Obama and Republican leader John Boehner in the previous session, overnight trade saw both parties once again accusing the other for a lack of progress and a refusal to put anything substantive on the table. When Mr Boehner said during his press conference that there had been little progress made with negotiations over the last two weeks, equity markets hit their session lows and the euro troughed at 1.2946 having earlier touched an intraday high of 1.3014. A follow-up press conference from the Democrats, sounding slightly more optimistic and conciliatory, allowed the euro to bounce off its lows to close US trade at 1.2979, about 30 pips above where it ended yesterday’s Australian session. One prominent commentator described the day’s event as being akin to a skit from ’Saturday Night Live‘, with many now convinced that negotiations will mirror that of last August’s ‘debt ceiling’ disaster and go right down to the wire. As a result, a choppy last month of the year is probably the most likely scenario, disappointing those hoping for a Santa Claus rally. The euro remains little changed in early Asian trade, but will no doubt see more volatility as today’s European and US sessions approach, particularly  with European CPI and employment data, German retail sales,  and Chicago PMI among the prominent economic data points on today’s calendar.  Elsewhere, the pound followed a similar pattern to that of the euro falling on Boehner’s comments before paring losses to finish the session approximately 20 pips higher at 1.6040.