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Forex: EUR/USD plunges as G-20 meeting takes place, low at 1.3312

The G-20 meeting is making the rounds, with EU's Rehn calling for more focus on reforms and less attention to fiscal and monetary stimulus. The main subject of the meeting for the FX market remains the question about policy on exchange rates. ECB's Asmussen defended market based rates, without fixed targets, and said the EUR is not seriously overvalued.

Like Rehn, Asmussen called for more attention on reforms, pointing to the importance of the French budget deficit under 3% GDP this year, and the stability and growth pact.

After erasing all gains made above 1.3363 (high at 1.3393), the EUR/USD fell to as low as 1.3312. As of writing, the market trades back above 1.3320.

UBS analysts are neutral: "There is strong support at 1.3270. Only a closing break below this would trigger deeper sell-off to 1.3187", wrote analyst Gareth Berry, pointing to resistance at 1.3520 ahead of 1.3564.

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