Forex: EUR/USD erases weekly gains (Córdoba) - The euro took another leg lower and printed a fresh 3-day low of 1.3157 versus the dollar during the American session, weighed by risk aversion amid lack of progress in US budget talks while the 'fiscal cliff' looms.

EUR/USD however, found buyers at the mentioned low, and managed to stage a mild bounce as the week comes to an end. EUR/USD is currently trading at the 1.3175/80 zone, still down 0.5% on the day, having erased almost completely its weekly gains within the last 2 days.

EUR/USD reached an 8-month high of 1.3307 on Wednesday, but the technical failure to consolidate above that level along with the stalemate in US budget negotiations put the pair back under pressure.

The upcoming week will be light on data and liquidity fronts as most markets enter the holiday season.