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Forex Flash: Euro price action more constructive than fundamentals - BBH

FXstreet.com (Barcelona) - Marc Chandler, Global Head of Currency Strategy at Brown Brothers Harriman notes that EU(R price action is arguably more constructive that the fundamentals.

He notes that disappointing flash PMI and German IFO survey warns that the regional economy is still contracting here in Q1 (while in comparison the US economy looks to have rebounded back to its recent trend after a dismal Q4). However, he feels that the euro's resilience to the poor news stream is actually a favorable technical development. He writes, “We see a modest bullish divergence in the RSI, as the new low for the move early last week was not confirmed by the indicator. The single currency has scope to rise toward $1.3100-30 in week ahead.”

He feels that the caveat, which he highlighted last week, is worth repeating. He writes, “This year, more often than not, the euro has moved in the opposite direction on Monday than it did on the proceeding Friday. The wild card of course is Cyprus and the ECB's threat to no longer sanction any more funding from the Emergency Lending Assistance (ELA) on Monday if there is no agreement.”

Forex Flash: Euro rebounds in knee jerk fashion as Cyprus deal agreed - BTMU

Lee Hardman, FX analyst at the Bank of Tokyo Mitsubishi UFJ notes that the Euro rebounded in the Asian trading session with EUR/USD rising back above the 1.3000-level.
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Forex Flash: Dollar weakens slightly despite Cypriot meleé - OCBC Bank

Emmanuel Ng of OCBC Bank note that the dollar weakened across the board on Friday with the EUR/USD testing above 1.3000 briefly despite background concerns surrounding Cyprus and amid hopes that a resolution would be found over the weekend.
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