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EUR/USD Downtrend Persists, With YTD Lows in Range

FOREX
  • The modest downtrend in EUR/USD persists through the European morning, with EUR/USD printing a fresh pullback low at 1.0587. This marks the fourth consecutive session of lower lows for the pair, and opens next support at 1.0484 (YTD low) and the 100-dma at 1.0443.
  • USD strength following the Wednesday FOMC minutes release remains the key driver, prompting the USD Index to narrow the gap with key resistance crossing at 104.667.
  • GBP continues to trade heavy and is among the poorest performers in G10. GBP/JPY is continuing to backtrack the gains posted earlier this week to narrow in on first support of 161.44. Moves come ahead of the nomination hearing for the next likely BoJ governor Ueda, who appears in front of the Japanese lower house at 0030GMT (0930 Tokyo time) on Friday.
  • Antipodean currencies are trading well, with AUD and NZD close to the top of the pile. This has paused the February CHF/AUD rally, with the pair oscillating either side of the 100-dma at 1.5727.
  • Weekly US jobless claims are the data highlights Thursday, with Q4 GDP revisions also due. Speeches are scheduled from ECB's de Cos, Fed's Bostic & Daly.
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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