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Forex: EUR/USD accelerates the decline, around 1.3380/85

The euro has rapidly left behind two big figures so far, intensifying the downside through another key support at 1.3400, as bearishness intensifies on Draghi’s warnings that a high exchange rate could pose a threat to the inflation.

In the view of analyst Carsten Brzeski at ING, “Adding the stronger euro to the downside risks for price stability opened the door for new policy action if the euro strengthens further and starts to weigh on the growth and inflation projections. Moreover, Draghi did not get tired of stressing the ECB’s accommodative monetary stance. He even implicitly voiced his dissent with monetary policies too obviously aimed at weakening the currency, sending an implicit signal that the ECB would not be happy with a further, not fundamentally-driven, appreciation of the euro.”

At the moment, EUR/USD is losing 0.99% at 1.3388 facing the immediate support at 1.3349 (low Jan.25) ahead of 1.3265 (low Jan.23) en route to the psychological level at 1.3200
On the flip side, a break above 1.3523 (MA10d) would aim for 1.3598 (high Feb.5) and then 1.3659 (Upper Bollinger).

Forex: GBP/USD holds up at 1.5700 after UK NIESR GDP

Incoming BoE Governor Carney brought the GBP/USD back above the 1.5700 psychological level after triggering a rally from 1.5650 to 1.5769 spike high with his testimony before the UK Parliament. Since then, the pair has been consolidating its position above 1.5700, even after the release of UK NIESR GDP estimate for January.
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Forex Flash: USD/JPY poised for sell bias – Westpac

In particular, the February 14 BoJ meeting looms large on the horizon for the JPY for a couple of reasons. Firstly, it is the anniversary of the February 14 move last year, which saw the BoJ shift its inflation objective to 1%, engineering a sharp move higher in USD/ JPY at the time. The other reason is that it comes just ahead of G20 (finance ministers and central bank governors) in Moscow February 15-16th.
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