The euro opened weak in the US, around 1.3150 and extended losses after a period of consolidation. The 200-day moving average at 1.3130 proved no support to EUR/USD but the stops below that average acted as an accelerant for the down move. Barriers at 1.3100 gave way with relative ease and we eventually fell as low as 1.3064 before protection of 1.3050 barriers was able to arrest the decline. Central banks from Asia and the Middle East were steady buyers on dips this morning but were unable to stem the tide of selling.

An afternoon rebound was seen after two rounds of Fed bond buying today pumped up equities, helping them almost entirely erase a 1.3% intraday loss. EUR/USD closes just below its 200-day average at 1.3130.

USD/JPY was able to marginally extend gains to the 84.40 level but selling of EUR/JPY along with a modest dip in US 2-yr note yields helped ease prices toward 84.25 in very quiet afternoon trade. We do close above the 100-day average for the first time since June. That average is at 84.06.

AUD/USD outperformed today, bouncing back to 0.9635 from 0.9568 lows as commodities held their ground despite today’s USD strength.

EUR/GBP was hammered as were all the euro crosses today as extending the Greek bailout terms to over a decade and fears that a new Irish government could renege on the EU/IMF bailout nagged at the market. It fell to 0.8408, the lowest since late September before closing at 0.8424. Cable was cushioned somewhat by the fall in the cross, sliding to 1.5528 before rebounding to 1.5550 at the close.