The pair settled the session lower after various officials continued to downplay expectations ahead of the EU Summit. In particular, German officials noted that no decisions are expected on the banking union. Separately, the German finance ministry has said the finance minister did not say Germany will move sooner than expected towards shared liability for debt, adding that reports that Germany has changed its position on Eurobonds is not true. This was in reference to WSJ writing that “German finance minister says Berlin is willing to negotiate on Eurobonds”. Also garnering attention was the latest debt auction by the Italian Treasury, which was again forced to pay higher price to entice participation. In terms of technical levels, supports are seen at 1.2375/60 and then at 1.2288. On the other hand, resistance levels are seen at 1.2524 and then at the 21DMA line at 1.2535.
The pair continued to be driven by the news flow relating to the Eurozone sovereign debt crisis ahead of the crucial EU Summit. Also, LIBOR probe settlement by Barclays prompted markets to question the health of the UK banking system. Separately, the outlook for the coming 12-months remained uncertain for both house prices and the economy, according to Nationwide analysis. In terms of technical levels, supports are seen at 1.5473/54 and then at 1.5404. On the other hand, resistance levels are seen at 1.5541 which is the 21DMA and then at 1.5576.
The pair trended lower throughout the session, as investors continued to evade EUR related assets ahead of the EU Summit. In terms of technical levels, supports are seen at 79.22/12 and then at 79.00. On the other hand, resistance levels are seen at 79.75/87 and then at 80.00.