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Forex Flash: ECB retains options moving forward – Deutsche Bank

FXstreet.com (Barcelona) - Overt fears that the ECB would fumble in the Great Global Central Bank pass the liquidity parcel game were eased yesterday as Draghi kept his options open more than he perhaps might have been expected to do.

There have been times in the last year where he has suggested that the ECB has done pretty much all it can do but perhaps he's learnt from the OMT program that bazookas can work at the right time. “One would have to say that the consequences of negative deposit rates would have to be thought through pretty carefully but in not ruling them out he subtly signaled a further easing bias.” suggests Macro Strategy Analysts J. Reid and C. Tan at Deutsche Bank.

This was reflected in the Euro, which went from 1.3135 to an intraday low of 1.3037 after these remarks and then settled modestly above these lower levels.

Forex: EUR/GBP again around 0.8400 support on NY time

The EUR/GBP was also affected by the widely expected employment report in the US, and a total of 70 more jobs than expected (with April data and March revision) made the market wobble. The 0.8450 line remains a resistance hard to beat today and after touching 0.8449 high, the cross was poured down to the base of 0.8400, to 0.8408 low, around where the cross found support yesterday.
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Forex: EUR/USD regains 1.3100

The euro has managed to climb back to pre-NFP levels against the greenback, as solid employment data also boosted risk appetite, which is prevailing following a strong opening in Wall Street.
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