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Forex Flash: EUR/USD back to 1.20 lows - UBS

According to UBS strategist Syed Mansoor Mohi-uddin: “Our end 2013 forecast of the greenback rebounding to last year's high of 1.20 against the euro remains dependent on the Fed slowing down and ultimately ending its third round of quantitative easing,” the analyst says.

“Three factors underscore our longer term bullish view on the greenback,” Mansoor expands: “First, the Federal Reserve will be the first of the major central banks to stop employing unconventional monetary policies. Second, dollar diversification by central bank reserve managers and sovereign wealth funds will abate as returns outside the US make it less attractive to increase holdings of foreign portfolio assets. And third, America's oil boom will markedly reduce the country's trade deficit,” he concludes.

Forex: GBP/USD deepens below 1.5500

Cable is down -0.24% for the week so far, last at 1.5480, and about -4.7% lower since year 2013 started. As CMT and FXstreet.com Independent Analyst Fan Yang notes: “There could be some reaction here, but there is still more room until key support in the 1.5250-1.5260 area. A bullish pullback is possible, but a break from a consolidation to the upside can make a stronger case since this upside outlook is against the trend since Dec,” the analyst says.
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Commodites Brief: Gold and Oil lower on stronger USD

Commodities overall have been falling during current month of February, with CRB index now below the 300 handle, last at 298, off its 2013 highs on Feb 01 at 305.56, about flat for the year so far. That includes Gold hitting Friday fresh 6-month lows below the key $1600 mark, at $1597, and Oil also down -1.12% by NY close, printing fresh 4-day lows at $95.41 for the WTCI, last at 95.58.
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