ForexLive US Wrap: EUR/USD Brushes 1.3500

Case-Shiller home price index rises 0.6% in November, as expectedm up 5.5% versus year ago
Italian authorities say banking system solid despite Monte dei Paschi problems
US consumer confidence tumbles to 58.6 in December from 66.7 in November
US delays approval of Japan's Softbank merger with US's Sprint, a $20 bln deal; usd/jpy dips briefly on news
Spanish region of Catalonia to ask central government for EUR 9 bln in funding
Merkel: ECB buying policymakers time

After waffling for much of the European session, EUR/USD became directional in US trade and spent the afternoon trying to overcome options-related selling ahead of 1.3500 barriers. Prices reached 1.3498 before stalling but dips proved shallow.

Equities traded firmly, underpinned by the Case-Shiller data, with the Dow and S&P near 2007 highs. Money continues to rotate out of safe havens and into riskier asset classes. This has pushed US 10-year note yields back to 2%, a boost for USD/JPY.