* Euro support seen at 55-day moving average at $1.2918
* Dollar edges down vs yen but some see long-term uptrend
By Lisa Twaronite
TOKYO, Nov 28 The euro moved away from the
previous session's one-month high against the dollar in early
Asian trading Wednesday as investors' relief about a new debt
target for Greece turned to unease about the looming U.S. fiscal
The U.S. Congress pushed toward compromise on Tuesday on a
deal to avert the "fiscal cliff" of tax increases and spending
cuts due to take effect next year but an agreement still
appeared elusive, despite growing pressure from business
interests for action.
While international lenders agreed on a plan to cut Greek
debt, which will allow Greece to secure more financial aid and
avoid a chaotic default, market scepticism grew over a lack of
details on how Greece will implement the reforms needed to meet
the new targets.
"The muddle through approach in Europe may amplify the
outcome of the U.S. fiscal cliff discussions," strategists at
Barclays wrote in a note to clients on Wednesday.
"If they go well, the relief on peripheral assets may have
legs, including the euro. If it goes bad, even France may get
questioned by an uncertain market, and we would expect the euro
to suffer," they said.
The euro had been in a rising trend against the dollar since
last week, as investors' hopes rose that a deal on Greece would
be reached and that U.S. lawmakers would make progress on
addressing the fiscal impasse. The single currency rose as high
as $1.3010 on Tuesday on trading platform EBS, its highest level
since late October.
The euro was down about 0.1 percent in Asia at
$1.2938, with support cited at its 55-day moving average, now at
$1.2918, and also at the 38.2 percent Fibonacci retracement of
its recent rally at $1.2877.
The European unit also lost 0.1 percent to 106.20 yen
, moving away from a seven-month high of 107.135 yen
set on Monday.
The dollar edged down about 0.1 percent to 82.08 yen,
moving away from a 7-1/2 month high of 82.84 yen hit last
The yen lost about 4 percent over the past two weeks, and
some market participants believe this heralds a longer-term
trend as investors have begun pricing in a possible
game-changing shift in monetary policy after Japan's Dec. 16
election, as the likely winner favours aggressive easing.