ForexLive US wrap: Cliff talks gather pace

Obama counters Boehner rate offer; considers changing CPI calculation on entitlements Draghi: Medium-term outlook for Europe remains challenging; no link between monetary policy, bank supervision; has seen marked improvement in financial markets Empire State Manufacturing index falls to -8.1 from in December from +5.2 in November Van Rompuy: Threat to euro's existence behind us Fitch: Dutch house prices could fall total 25% Merkel:Up to Spain to ask for aid Fed's Lacker: Will take three years for unemployment to fall to 6.5%; inflation risks to rise in 2014 Nikkei: BOJ to discuss inflation target It was a day of backing and filling in FX markets after a strong risk rally in the wake of the Japanese LDP sweeping into power. Firmer US interest rates helped USD/JPY recover from a bout of profit-taking earlier in the session to end the day in the 83.80s. EUR/USD held above 1.3150 on it shallow pullbacks in New York but remains constrained by 1.3200 barriers.