EUR/USD has edged lower, and dropped below the 1.32 line as US lawmakers have failed to reach an agreement on the fiscal cliff. Although talks between the Republicans and Democrats continue, the prospects of a last-minute breakthrough do not look good. The final US release of 2012 looked sharp, as Pending Home Sales jumped 1.7%, well above the forecast of a 0.3% decline. With the markets closed on Tuesday for the New Year’s holiday, trading volumes remain thin. This has reduced liquidity and could result in increased volatility as we wind up 2012. There are no scheduled releases from the Euro-zone or the US on ... (full story)