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Forex Flash: GBP/USD to weaken to 1.478 and possibly beyond - RBS

The Sterling is poised to weaken further following a dovish speech by BoE's Fisher, notes Greg Gibbs, currency strategist at RBS, adding also that "BoE members in testimony reiterated the views discussed in the recent MPC meeting that they were prepared to take further measures to spur growth."

Greg expands: "The UK press reports that Deputy Governor Tucker discussed the possibility of charging banks for leaving cash on deposit at the central bank, which appears to mean targeting negative cash rates. GBP continues to trade below a key support line for the last three years, suggesting a significant break and potential for a slide towards 1.478 and possibly much lower."

Forex: AUD/NZD resists below 1.24 Fib

AUD/NZD is currently at 1.2379, off recent fresh Feb highs at 1.2345, printed on weaker than expected trade balance figures for NZ, showing a deficit of -305M. Data showed exports weakened while exports rose, mostly due to “reconstruction activity,” said Societe Generale analysts, “and hence not such a bad development,” they noted.
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Commodity Brief: Gold higher on Bernanke testimony

With market attention at the moment on Cyclone Rusty nearing Western Australia's iron ore hub, Bloomberg reports, Gold sits quiet around the $1612 in the spot market, off daily highs at $1620, following the rally from NY session lows at $1584 on Bernanke's testimony, which later on today at 15:00 GMT will hold its second part. As James Rickards noted on his Twitter account, Managing Director at Tangent Capital: “Watching the Gold ticker during Bernanke testimony was like watching the polygraph needle go off the charts on a dishonest witness,” he said, when FED's chairman eased financial market worries on a possible retreat from bond purchases sooner than expected, Reuters reported.
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