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Forex: EUR/USD in red around 1.3040/45

FXstreet.com (Barcelona) - The demand for the single currency remains subdued on Monday, as the cross continues to navigate in the red territory after giving away initial gains.

“Already the prospects of the ECB cutting its benchmark lending rate from 0.75% have increased with President Draghi saying that inflation will be on the 'low side' next year, IMF head Lagarde noting that 'of all the major central banks in the world, the ECB is the one that still has room to maneuver', and Bundesbank President Wiedmann suggesting the ECB may adjust interest rates in response to new information”, assessed FX Strategist M.Mohi-uddin at UBS.

At the moment, the cross is losing 0.23% at 1.3046 and a breakdown of 1.3036 (hourly lows Apr.22) would open the door to 1.3001 (low Apr.17) and finally 1.2969 (MA21d).
On the flip side, resistance levels line up at 1.3130 (high Apr.19) ahead of 1.3202 (high Apr.16) and 1.3229 (50% Feb-Apr slide).

Forex: AUD/USD finds support at 1.0250

The Australian dollar trades effectively unchanged on the day versus the greenback but not without volatility. AUD/USD peaked at 1.0308 during the Asian session but failed to sustain gains and slid toward a new 5-week low of 1.0250 despite broad gains in stocks.
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European markets cheer G20/IMF meeting

The German DAX 30 (+0.78%) and the French CAC 40 (+0.70%) are up on Monday, like the Spanish IBEX 35 (+1.90%), the Greek ATHEX (+1.93%) and the Italian FTSE MIB (+2.34%). Equity markets are higher today, pricing in their thoughts about the outcome of the G20/IMF, more inclined towards growth rather than fiscal dogma. In Italy. President Napolitano was re-elected to a second seven-year term (738/1007 votes), PD’s Bersani resigned after no agreement in five votes. “So Italy has a President but no leader for its largest party”, wrote analyst Annette Beacher, adding that Napolitano’s desire is for a broad coalition government that adopts much-needed electoral reforms, which would be market positive.
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