Yen Surges, Euro Awaits Ifo

Yen surges across the board as traders are unwilling to focus all of the safe haven flows on the US dollar after the Fed renewed its asset purchases. EURUSD bounces off its 200-DMA for the 4th straight day, but failing to close above its 6-week trendline. The quick knee-jerk reaction to 1.2920s resulted by unfounded rumours that Cyprus reached a deal with Russia, but news of Cypriote Fin Min Sarris' return home without any agreement sent euro back down. Euro awaits German IFO survey due at 9 am GMT/London, expected to show 107.8 from 107.4 in the Business Climate index, 110.5 from 110.2 in the Current Assessment index and 105.0 from 10.6 in the Expectations index.  A “beat” in the news will be required to sustain EUR above the 1.2880-00 support.  GBPUSD nears our Premium target as it creeps towards the Jan 02^nd trendline resistance. For thsoe Premium trades, please see our latest Premium Insights.