Foreign exchange markets have traded within tight ranges for most of the European session, but as we enter the close, the USD looks to be succumbing to another wave of selling pressure. EURUSD is up nearly 1% on the day at 1.4540, and USDJPY has caught up with the rest of the majors by selling off to 91.81 levels towards the end of the day. Gold remains elevated at $1156 after earlier touching highs of $1161.96 - and looks to target a revisit of $1168.50 resistance (61.8% Fibonacci retracement of the sell-off from $1226.44 to $1074.82).

The few data releases during the session have not had a great deal of impact on exchange rates; Swiss Retail Sales came out at a subdued 0.6% YoY, but the prior month's reading of 3.1% was revised higher to 3.6%. After Hildebrand's earlier rhetoric, EURCHF remained stable within the 1.4740-1.4780 range. Norway's December CPI readings were slightly firmer than expected at 0.2% MoM, 2.0 % YoY (expectations were for 0.1% MoM, 1.9% YoY), but despite some intraday volatility, EURNOK is flat on the day.

Tomorrow we expect a light data calendar featuring Swedish CPI, UK Trade Balance, and US Trade Balance.