New York Session – January 26, 2012 4:21 PM

Sentiment deteriorated as Greek debt talks continued with no new developments to announce and after softer U.S. labor and housing data. The IIF left markets with little information to digest other than that “some progress” was made in Athens today and that talks will resume tomorrow. The dollar started the session significantly lower and managed to regain some of its losses as traders took profit ahead of key technical levels. Despite a late day rebound, the US dollar remained softer against most of the majors. EUR/USD stalled ahead of the daily ichimoku cloud base and 38.2% Fibonacci retracement level (of the decline from Oct. highs to Jan. lows) which comes in above the 1.32 figure. The pair saw session highs of nearly 1.3180/85 before correcting lower to current levels of around 1.31. Full text »

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