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ECB's Asmussen: Germany must implement reforms to boost growth

FXstreet.com (Barcelona) - ECB Executive Board member Joerg Asmussen told reporters on Friday that the German economy is robust but unless the country's government implemented necessary reforms, it probably wouldn't grow more in the second quarter of the year than in the first quarter. According to recent data German Q1 GDP rose by 0.1%, narrowly escaping a recession.

Furthermore, Asmussen warned that some countries in Europe are facing a “decade of adjustment” and assured that the ECB's monetary policy would remain expansive for as long as needed. He added however that maintaining low interest rates for a prolonged time could result in a mis-allocation of resources.

Finally, the ECB policymaker emphasized the importance a quick implementation of the EU banking union, which in his opinion should be completed by the summer of 2014. He also added that the situation in the Eurozone should improve gradually this year and that the euro is a stable currency.

AUD/USD remains pressured below 0.9800

The Australian dollar remains among the worst performers in the FX space. While most crosses consolidate in slim ranges, the AUD/USD dropped to hit yet another low on Friday.
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Flash: EUR/USD faces bearish headwinds – UBS

UBS Strategists, Gareth Berry and Geoffrey Yu take a technical perspective at today's EUR crosses and note that there is a generally neutral-trending bias ahead.
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