MARKET TALK: EUR May Weaken On Renewed Greek Debt Worries

EUR may fall, as S&P's announcement overnight that it may cut Greek rating by 1 or 2 notches within next month fueling speculation that European risk aversion to keep growing, says Shinkin Central Bank senior dealer Jun Kato. "That was the news that investors were waiting for (to sell the euro)," he says. Adds S&P's announcement likely to weigh on EUR in coming sessions, investors will pay attention to comments from European officials regarding debt problems. Adds USD/JPY biased down over longer term as Fed Bernanke, as expected, signaled overnight Fed won't hike its rates for now, keeping interest rate differentials between Japan, U.S. narrow. His comments helped USD/JPY overnight by lifting stocks, but such effects should be "short-lived," he says. Dealers tip 89.80-90.50 range, vs 90.19 last. EUR/USD may trade in 1.3480-1.3580 range vs 1.3538 last. EUR/JPY may trade in 121.50-122.50 range vs 122.11 last. Adds investors will pay attention to U.S. durable goods sales data due later in day; Dow Jones poll of economists tip January's total orders +1.5%