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Forex Flash: Euro sovereign spreads declining but still seek panacea – Goldman Sachs

FXstreet.com (Barcelona) - The introduction of the OMT has served to reduce intra-Euro area sovereign spreads. However, “our new data indicator suggests that it has done little to reduce cross-country divergence in bank lending rates to non-financial corporations (NFCs), which has remained stubbornly high in recent months despite the stabilization of sovereign markets.” suggests the Economics Research Team at Goldman Sachs.

The new indicator is consistent with our established view: market segmentation remains, divergence in bank lending rates persists and, as a result, immediate growth prospects in the periphery are bleak. Cutting policy rates does little to alleviate these problems. According to the team, “Credit easing measures targeted at specific problem countries and sectors (e.g., loans to SMEs in the periphery) are a likely path for the ECB to pursue in addressing the implied macroeconomic concerns.”

Forex Flash: TD Securities expects AUD/CAD to test 1.1000 in the next 1-3 months

After peaking to 1-month high at 1.0715 on March 22nd, the AUD/CAD has been retracing toward the 1.0560 level where the pair remains trading in consolidation mode. The Cross is currently at 1.0585, just 10 pips above opening price.
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Forex Flash: USD/CHF potential decline ahead – Societe Generale

The cross is now trading in a very narrow range between 0.9490 and 0.9500 on Friday, stabilizing after climbing as high as the boundaries of 0.9560 on Wednesday, following the positive momentum of the USD....
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