FXstreet.com (Barcelona) - The single currency is giving away some early gains, easing to the area around 1.3450 after climbing to the boundaries of 1.3480

Against the backdrop of the recent LTRO repayment figures, Christopher Vecchio, Currency Analyst at DailyFX, comments, “ these repayments represent a form of monetary tightening by the ECB: the balance sheet is shrinking. At a time when the Federal Reserve, the Bank of Japan, and the Swiss National Bank (the Bank of England soon as well) are all flooding the market with liquidity (expanding their balance sheets), any measures brought forth by the ECB that shrink the balance sheet are inherently Euro positive”.

The pair is now up 0.60% at 1.3356 with the next resistance at 1.3487 (2012 high Feb.24) followed by 1.3491 (50% of 2011-12 decline) and then the psychological level at 1.3500
On the downside, a dip below 1.3410 (hourly low Jan.25) would aim for 1.3349 (low Jan.25) and then 1.3347 (MA10d).