Forex Flash: Fiscal cliff-induced EUR/USD volatility expected to hold in range - UBS

FXstreet.com (San Francisco) - The latest recap of EURUSD from UBS: "Markets were set into a risk-aversion mood late in the Tuesday session, when US Senate Majority Leader Harry Reid expressed his view that only little progress was made in the so-called 'fiscal-cliff'-negotiations to avoid large tax hikes and spending cuts. Risk aversion led among others to profit taking in long Euro versus US dollar positions, driving the EURUSD rate temporarily below 1.29, before rebounding on more positive news."

EURUSD currently trades flat at 1.2955 this afternoon in Asia, and UBS continues to expect the 1.28-1.34 range to hold.