Forex: EUR/USD rallies after Italian debt auction (Barcelona) - The EUR/USD didn't hold at the opening price area and eventually fell back again, to as low as 1.3436. Strong bids were found there, forcing a full retracement of losses in a rally back to 1.3455 and little higher. On the back of such Euro strength is the Italian 6-month debt auction, at 0.731% average yield, the lowest since March 2010.

Recently released was Greece PPI data, easing from 2.4% to 1.9% in December (YoY), and putting an end to European calendar released for the day. The US session will have S&P/Case-Shiller Home Prices due at 14:00 GMT, and US consumer confidence at 15:00 GMT.

“Still in the range after 1.3479 high and I continue to expect a dip to 1.3380-90 support area before renewal of the overall uptrend towards 1.3650”, wrote analyst Stoyan Mihaylov.