[LFX]

The move up after the break of technical resistance seemed to come to an end just above 136.00. A USD rebound on the back of poor earnings from BoA and GE also led to some paring of risk positions and some selling of yen crosses. EUR
positions were also hit by reductions in positions ahead of a Eurozone finance ministers meeting today. Apparently the topic of foreign exchange is on the table and there is speculation that they might voice some concern about the strength of EUR. However comments from Luxembourg’s Juncker in which he maintains that the EUR is not a worry at the current level suggests that a strong statement from the group is unlikely to be forthcoming. US bond yields are still hovering in the 3.40% area, but expect a move up to the 3.55% level, likely adding to pressure on the yen to depreciate.