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Forex Flash: Risk sentiments permeate markets, Fitch eyes Slovenia – Investec

FXstreet.com (Barcelona) - The USD continued to sell off overnight, particularly against hard currencies like the Aussie Dollar and Gold, as risk sentiment continues to abound throughout markets, largely controlled by events in Asia, which is becoming somewhat of the norm in 2013. According to the Investec Research Team, “The pound will certainly be looking to take advantage of any sustained weakness in US dollars but there remains a popular view that GBP/USD is still exposed to a short-term reversal to 1.5240 in light of a continued sluggish performance in Sterling.”

Looking ahead to today the main event is actually going to be this evening with the Federal Reserve minutes released across the pond. The market will continue to rest on the edge of its seat to see if there are any hints of a timeline for exiting QE3.

Elsewhere, it appears that Slovenia could be next in line for a Cypriot style bail-out after the OECD warned the country faces a ‘severe banking crisis’ and this comes in the wake of their banks being downgraded by credit rating agency Fitch on Friday. It seems inevitable this story has more to run so we will watch how events unfold very closely.

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