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Forex: EUR/USD erases gains after peaking at 1.3065

The market rebound could only extend to 1.3065 high as the EUR/USD peaked there just before the European opening, giving in to selling pressure that fully retraced daily gains back to the 1.3034 opening price.

EMU industrial production is due at 10:00 GMT and consensus points to a 0.1% monthly drop in February. “There is more activity with issuance, where Italy is issuing up to €5.5bn of 15s and 28s, in addition to 4y and 5y FRNs, announced around EST10:10am and Germany is issuing €5bn of 2y, with results around EST10:35am”, wrote TD Securities analyst Alvin Pontoh.

Spain CPI rose 0.2% (MoM) and 2.8% (YoY) – consensus of 0.1% and 2.7% - in February, with HICP also having a higher final reading of 0.1% and 2.9%, against 0.0% and 2.8% consensus.

France nonfarm payrolls fell -0.2% in Q4 2012 (QoQ), following a -0.2% drop in Q3 that was revised from -0.3%. The final reading of French February CPI (EU norm) came in at 0.3% (MoM) and 1.2% (YoY).

“Larger picture bears are still in play and see the downside vulnerable, as loss of 1.2950 would open 1.2900 and 1.2875, 50% retracement of larger 1.2042/1.3710 upleg”, wrote Windsor Brokers analyst Slobodan Drvenica, pointing to a stronger recovery once above 1.3133/60 barriers.

Forex Flash: What lies ahead of EUR/USD? – Commerzbank, UBS and BTMU

The single currency returned to the 1.3040/45 region after posting fresh highs above 1.3060, in an attempt to follow though Tuesday’s highs. Momentum surrounding the euro continues to be directionless, as...
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Commodities Brief – Precious metals surrender some of yesterday’s gains, crude targets stability above 93.00

The price of gold has made a comeback in recent days, trading near its two-week high as renewed fears out of Europe have helped foster risk-aversion in markets – clearly to the benefit of the yellow metal. While prices have not been able to overtake the 1600 barrier/key resistance in recent days, gold has succeeded in being confined to a narrow consolidation, stabilizing a month-long free-fall. Indeed, in the aftermath of last week’s Italian downgrade by Fitch, along with other European blemishes surfacing on the continent, gold could be primed for a move higher if sentiment wanes. At the time of writing, the price of gold has settled at USD $1590.54 per oz.
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