EUR/USD sits at 1.3935, down from a North American close Thursday around 1.3970, but off 1.3913 session low.
There are ongoing worries surrounding budget deficits of various euro zone countries, Greece to the fore. In an interview with the WSJ Greek PM Papandreou says “These six months are going to be crucial. They will be the test for us and, internationally, for our credibility.” Ain’t wrong there me old fruit.
General risk sentiment is in pretty poor shape, with Asian stocks getting hit overnight. Rumours of an imminent Chinese rate hike (go figure) and friction between North and South Korea are hardly helping matters.
Talk, not surprisingly, of 1.3900 option barriers. There will be the usual expectations of some defence of said level.
Euro zone data due today:
Euro zone Ifo business climate survey by industry for January
09:00 GMT: Italian PPI for December expected +0.1% m/m, -1.5% y/y
09:00 GMT: Euro zone M3 money supply for December expected -0.1% m/m, -0.5% y/y
09:00 GMT: Euro zone unemployment for December expected 10.1% from 10.0%
10:00 GMT: Italian unemployment for December 8.4% from 8.3%
10:00 GMT: Euro zone CPI y/y for January expected +1.2%
European stocks seen opening marginally firmer, which I have to say surprises me a little.
Release of Q4 US GDP looms large later this afternoon.