With European markets opening sharply lower, spot found itself dragged down by proxy to post a low at 1.2665 before retracing to where it is currently trading at 1.2685. This morning has seen some generally soft CPI figures out of Europe so far with Spain and Switzerland mildly disappointing forecasts and adding to a bit of negative risk sentiment. Italian numbers registered in line with forecasts. UK CPI is next at 09:30 GMT, followed by the German and EU ZEW Survey at 10:00 GMT.
Richard Lee, Independent analysts for FXStreet.com notes that resistance at 1.2750 is looming above price action and has contributed to the overnight break of 1.2700. he believes that the move lower has opened the door to a move to 1.2600. He feels that any move higher remains contingent on a break of 1.2750.