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EUR/USD muted on ECJ decision

FXStreet (Edinburgh) - The shared currency kept the composure after the European Court of Justice decision, with EUR/USD lingering just around 1.1800 the figure.

EUR/USD now looks to Merkel, Draghi and Schauble

The (non-binding) decision of the European Court of Justice stated that the ECB’s OMT programme is ‘in principle’ in line with EU Treaty, but it will need to meet certain conditions. The pair remains within its recent range around 1.1790/1.1800, with market participants now waiting for the outcome of the Merkel-Draghi-Schauble close-door meeting, as it carries the potential for some volatility in the euro. Data wise, EMU’s Industrial Production is due next ahead of US Retail Sales.

EUR/USD key levels

The pair is now up 0.20% at 1.1795 with the next resistance at 1.1866 (200-h MA) followed by 1.1871 (high Jan.12) and then 1.1897 (high Jan.7). On the flip side, a breakdown of 1.1753 (2015 low Jan.13) would aim for 1.1640 (low Nov. 2005) and finally 1.1376 (low Nov.2003).

ECJ Advocate General: OMT legal "on principle", extraordinary circumstances required

In a non-binding opinion on the case of the legality of the European Central Bank’s Open Market Transactions programme, Advocate General Pedro Cruz Villalon of the EU Court of Justice in Luxembourg has said that the European Central Bank’s Open Market Transactions may be legal “on principle” providing certain conditions are met.
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Pound sees scope for some rebound - BTMU

Derek Halpenny, European Head of Currency Strategy at the Bank of Tokyo Mitsubishi UFJ, comments on the media reports citing risks of deflation in UK, and further adds that Pound has seen excessive selling since the start of the year and might rebound.
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