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Forex Flash: Majors slide against USD & JPY - OCBC Bank

Emmanuel Ng of OCBC Bank note that major currencies slid against the USD and the JPY on Monday as potential political deadlock emanating from the Italian elections soured EUR as well as global sentiment.

Looking at the Euro, he is expecting it to continue to be weighed in the near term as markets await news of a possible coalition and the resultant stance towards reforms. Ng notes that initial reports indicated that the center-left (quasi-EUR positive) could have garnered a slim lead but this was contradicted by subsequent reports.

Meanwhile he notes that price action on the Yen crosses were particularly acute given the temptation for profit taking with a market already laden with JPY shorts. Going ahead, he feels that more negativity may well be in store for the market as the 1 March 2013 sequestration deadline looms and with little indication of progress between US President Obama and Congress. Elsewhere, he expects investors to remain watchful towards the nomination of the BoJ Governor, expected next week, with ADB Governor Kuroda widely touted to be a front runner. Ng is expecting JPY bearishness to remain an underlying market theme.

Forex Flash: Market overextended as position squaring evident in GBP & JPY - Societe Generale

Sebastien Galy, Senior FX Strategist at Societe Generale notes that the market is left over extended in its position and the squaring of position is now evident in GBP and cross Yen.
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Forex: EUR/SEK retreats from highs on Riksbank minutes

The Swedish krona is trading flat against the euro on Tuesday, despite the slightly hawkish tone from the Riksbank minutes...
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