Underlying confidence in the Euro-zone economy remained weak

EUR/USD

The Euro was unable to push back
above the 1.41 level against the US dollar on Wednesday and
remained generally on the defensive during the day.

Underlying confidence in the
Euro-zone economy remained weak with further unease over the debt
situation within Greece and further speculation that pressures
could spread to other countries with some rumours of a forthcoming
debt-rating downgrade for Portugal.

The US housing data was again weaker
than expected with new home sales declining to an annual rate of
342,000 for December following a revised figure of 370,000 the
previous month. There was evidence that sales demand triggered by
tax credits was fading which tended to undermine overall sales and
will reinforce doubts over the economy.

As expected, the Federal Reserve
left interest rates in the 0.00 - 0.2…