By: Hillel Fuld
The EUR stood its ground on Friday after making a comeback from an all time low versus the Swiss franc and a three-week low vs the dollar. It is also expected to experience renewed pressure after market players return from the Christmas vacation.
Analysts stated that Thursday's comeback in the euro was long overdue particularly against the Swiss franc after heavy buying by hedge funds had assisted it to hit a series of record lows this week to the point where technical signals indicated an oversold market.
However, little action took place in Asia with volumes drying up heading into the Christmas vacation. U.S. markets are closed on Friday along with many European centers.
"In this type of market condition, it's very hard to take a position because you'll just get whipped out and that's why there are hardly any orders. People are waiting for January when liquidity returns to work out what they want to do," a trader at a U.S. investment bank said.
"The euro is still a sell-on-rally trade. Anything above $1.32 is worthwhile selling in my view and probably there won't be any buyers until the low $1.30s, where we could see some Asian central bank interest."
The single currency stood at $1.3130 off a three-week low of $1.3055 set on Thursday.