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Forex Flash: Euro initially reclaims 1.3000 post NFP´s and Cyprus - BTMU

FXstreet.com (Barcelona) - Lee Hardman, FX analyst at the Bank of Tokyo Mitsubishi UFJ notes that the Euro initially climbed back above the 1.30-level following the weaker than expected US employment report erasing its modest decline driven mainly by recent developments in Cyprus.

So far, he feels that evidence of broader contagion to the rest of the Eurozone from the developments in Cyprus in the nearterm have been limited, helping to support the single currency. He writes, “Government bond yields in Italy and Spain have fallen alongside yields in most other major economies following the BoJ’s recent policy announcement as the additional global liquidity is expected to reinforce investors’ search for yield.” However, he feels that further EUR upside potential in the near term is likely to be dampened by building expectations of additional monetary easing from the ECB. He sees that at last week’s ECB meeting President Draghi gave the strongest signal yet that they stand ready to act and will watch incoming economic data closely. Hardman finishes by writing, “The ECB appears mainly concerned by and is assessing ways to help ease credit conditions for the private sectors in fiscally challenged members. A rate cut will likely only help at the margin. Weak economic conditions outside of the US continue to help ease the negative impact of the Fed’s ongoing QE3 programme upon the US dollar.”

Forex: USD/CHF edges lower to 0.9338/39

The USD/CHF has been sapped of all momentum Monday, despite having recently witnessed the publication of lackluster EMU economic data. “The pair’s unwillingness to break sharply in either direction, suggests a more sideways trend, leading to a neutral short-term outlook for the pair.” suggests Research Analyst Gareth Berry at UBS. In these moments, the pair has settled at 0.9338/39, down -0.14% thus far.
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Forex Flash: EUR crosses are technically mixed - UBS

UBS Strategists Gareth Berry and Geoffrey Yu have taken a look at today's EUR crosses from a technical perspective.
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