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FOREX SUMMARY

FOREX

FX session started on the quieter side in early European trading, but this has quickly changed with the EUR taking centre stage once again.

  • Short covering in the EUR, saw broad base EUR buying, combined with better USD selling.
  • No headline or trigger to explain the move, and likely more positioning on technical breakouts.
  • EURGBP is up 0.63% and through initial resistance at 0.9271, now at 0.9285 at the time of typing.
  • Above the latter targets 0.9305 76.4% retracement of the Mar - Apr sell-off.
  • AUDUSD is testing 0.7300, taking its cue from the USD sell off, and we now target next resistance seen at 0.7325 High Sep 10.
  • Rand extended gains and is the best performer in EM versus the Greenback, 0.91%The pair unwound some of yesterday's rally despite the large contraction in the SA GDP.Better
  • USD selling this morning is leading price action, with the dollar in red territory versus all majors, besides JPY and KRW.
  • Looking ahead, US CPI and US Monthly Budget Statement.
  • Also plenty more ECB speakers are scheduled, including Lagarde, Mersch, Holzmann, Lane and Scnabel

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