Less than impressive EU related macro data weighed on EUR, which as a result underperformed its peers during the EU morning session. Also, touted UK bank buying in GBP/USD, as well as deteriorating conditions in EU credit markets which translated into lower EUR/GBP, exaggerated the selling pressure on the EUR. However as the session progressed, the pair recovered some of the earlier losses, in part supported by the reports that Greece is nearing an agreement to extend its bailout program by a further 2-years. As note earlier, core European data has heavily suffered today, particularly in Germany, with flash estimates for Manufacturing and Services PMIs missing expectations, in the first indication of Q4 GDP in the Eurozone. Following the releases, sentiment continued to worsen, but saw somewhat of a turnaround in the stock futures as US participants came to their desks. In terms of technical levels, supports are seen at the 200DMA line at 1.2828 and then at 1.2807 which is the 21DMA lower Bollinger level. On the other hand, resistance levels are seen at the 10DMA line at 1.3019 and then at the 21DMA upper Bollinger level at 1.3125.
The pair settled the session higher, supported by a weaker EUR which weighed on GBP related cross, as well as touted buying of GBP/USD by a UK clearer. In terms of domestic macro eco commentary, ahead of the eagerly awaited GDP report on Thursday, the UK statistics authority is examining whether UK PM Cameron broke the embargo on GDP data. This follows comments from the PM Cameron in Prime Minister's Question Time in today's House of Commons session wherein the UK PM listed recent positive economic indicators for the UK economy, before saying "the good news will keep on coming", which some have read into as hinting towards tomorrow's GDP reading for the UK. In terms of technical levels, supports are seen at the 21DMA lower Bollinger level at 1.5931 and then at 1.5882. On the other hand, resistance levels are seen at the 21DMA line at 1.6082 and then at 1.6178.
There was little in terms of fresh Japan related macro economic commentary, however speculation of more policy easing remains rife ahead of the meeting later on in the month. Elsewhere, it was reported that diplomats from Japan and China have secretly met in Shanghai in order to discuss bilateral ties that were affected over the conflicting claims regarding sovereignty of the Senkaku Islands.