EUR/USD continues to benefit from the heat escaping the Greek debt situation. As speculation against the ancient country dies down, spreads between German bunds and the bonds of the lesser euro zone credits like Spain and Portugal continue to contract. This is prompting modest further short-covering in EUR/USD.
Hedge funds have been selling strength but stop loss buy orders are beginning to build above the 1.3736 highs posted on Wednesday.
Offers are seen heavy in the 1.3720/25 area near-term, traders report.
There is a bit of a “risk on” trade taking place today with the likes of AUD/USD and aud/jpy well bid. This is helping underpin the EUR/JPY as well. Resistance lies at 124.00, 124.50 and 125.23 in the cross.