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Forex Flash: EUR/AUD faces headwinds from ECB – ANZ

FXstreet.com (Barcelona) - The ECB’s post-meeting comments last week on negative deposit rates could become a headwind for the EUR/AUD. According to FX Strategist Andrew Salter at ANZ, “A negative deposit rate is not a credible or expected policy at this stage. However, it is a ‘shot across the bow’ to foreign exchange markets.”

Past cases where negative deposit rates have been introduced have unambiguously been in response to unwelcome upward pressure on the exchange rate. Compared to when the trade was initiated, it therefore appears that the ECB are somewhat more sensitive to a rallying EUR than was expected.

In the AUD, “the short-term speculative community has constructed notable short positions in recent days. With market commentary noting underlying demand from corporate and real money accounts in recent sessions, it also appears likely the AUD is poised for a squeeze.” Salter adds.

Commodities Brief – Gold climbs to session highs, crude oil testing 96.00 level

The yellow metal finally broke out of a tight consolidation that had afflicted the commodity during overnight and European trading Wednesday. In a generally subdued trading session, i.e. in the absence of any meaningful waves or economic figures, the price of gold has managed to notch fresh session highs at USD $1468.80 per oz. in these moments. At this juncture the 1475 resistance remains the next measure of correction conspiring against further upside.
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Forex Flash: Gilts look to extend weakness after Fibonacci support – RBS

Gilts led the way down after taking out 20-day MA and breaking the 119.00 support level. According to Technical Strategist Dmytro Bondar at RBS, “The price however reached a good support region of 118.61/71 formed by the 123.6% Fibonacci projection from the March impulse wave and a filled-not-closed gap from 27 March.”
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