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Forex Flash: USD to appreciate when US-only holidays – Nomura

FXstreet.com (Barcelona) - According to Nomura, when a local market closes for holidays, the local currency tends to appreciate against the USD: “We find that generally during local market holidays, local currencies appreciate against USD,” say analysts at the bank, while, “During US-only holidays, the USD tends to appreciate against other currencies,” they note.

“One hypothesis that can explain this behaviour is that during market holidays outflows related to investments into foreign markets are curtailed,” Nomura suggests, “Hence, an absence of these flows results in appreciation of the local currency,” they conclude.

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Forex: EUR/USD quiet during Asia session, resistance at 1.3200 remains in focus

The EUR/USD finished the day sharply higher, up 73 pips at 1.3166. However, the pair was once again unable to take out major resistance at 1.3200, a level which also capped advances back in mid April. The next US Session will be extremely busy with economic data, starting with ISM Manufacturing PMI at 14:00GMT. Later in the day, we will see the Federal Reserve Monetary Policy Statement at 18:00 GMT. Currently, the EUR/USD is slightly lower during Asia trade, down 6 pips at 1.3162.
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