The EUR/USD opened in Asia around 2.3465 after a quiet US session that saw the EUR/USD gain all of the ground lost in London where it dipped to 1.3440. The Asian session was extremely quiet for the EUR/USD and it stayed between 1.3455/67 for the Asian trading day.
There was talk of central bank bids below 1.3450 and good selling interest at 1.3475 to keep stops above 1.3480 safe for the time being. There was some action in the JPY crosses once again and the EUR/JPY was a bit more lively trading in a 166.00/57 range.
Traders expect the European session to be fairly quiet as well with no major data out of Europe to budge the EUR/USD out of a tight range. The market will look ahead to the US session with the release of US Consumer Confidence and US New Home Sales. The market is still nervous about how the Bear Stearns problems with CDOs/subprime mortgages will play out and whether or not it will widen enough to have a negative effect on the US economy. The EUR/USD has been influenced by moves in US Treasury yields so further easing of US Treasuries should support the EUR/USD.
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