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Forex: EUR/USD erases daily losses ahead of US manufacturing data

FXstreet.com (Barcelona) - The day started with a risk-off tone on suggestions that deposits over 100K in two Cyprus banks may be subject of more losses than the 30% tax previously thought, but the EUR/USD was able to bounce back from its low at 1.2772. The pair erased its gains back to the opening price, but is facing resistance there, which is keeping the market slightly on “red”.

The economic calendar will welcome March manufacturing PMI data in the US, with market consensus pointing to a rise from 54.3 to 54.9 of the Markit indicator, and a slight drop of the ISM figure from 54.2 to 54.1. “The US manufacturing sector is continuing to enjoy a period of rebound as the bounce back in domestic economic growth momentum is pushing new orders and production activity close to their highest level in almost a year. This positive momentum should be sustained in April”, wrote TD Securities analyst Alvin Pontoh.

“The consolidation pattern after 1.2750 low is still underway and the intraday bias is positive after 1.2770 low, for a rise towards 1.2890 resistance area”, wrote Deltastock.com analyst Stoyan Mihaylov, with an outlook on the senior time- frames remains negative for 1.2650 with a crucial level at 1.3050.

Forex: AUD/USD back to 1.0426 resistance

The AUD/USD fell to 1.0387 low during the Asian session, but the market was able to retrace it back to the 1.0400 and Friday’s close at 1.0412. The cross has pushed as high as 1.0426 as investors get ready for the NY session.
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Forex Flash: EUR weakness explained – UBS

In Cyprus, there are fresh indications that deposits greater than EUR 100k in two Cypriot banks will likely sustain larger losses than originally feared. According to Research Analyst Gareth Berry at UBS, “This may partly explain why the EUR/USD fell to a new 14-week low of 1.2771 overnight.” Meanwhile, a quarterly IMF survey released on Saturday probably did the euro no favors either.
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