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Markets pause as Italian stalemate............>

FOREX
FOREX: Markets pause as Italian stalemate continues
-After a particularly volatile session yesterday, the EUR's regained a sense of
normality today, rising against most others in the G10 but remaining well within
yesterday's trading range. Italy still appears far from acquiring a sustainable
government with late July still a likely launch date for fresh elections.
EUR/USD sits close to session highs at the midpoint of the morning, touching
$1.1612 but still well shy of yesterday's best levels of $1.1639.
-After yesterday's USD rally resulted in the highest USD index since November,
the greenback has pulled back slightly alongside the CHF and JPY safe havens.
-Elsewhere, the much maligned SEK is in favour after Q1 GDP figures beat
expectations, allowing USD/SEK to pull comfortably away from one-year highs
posted Tuesday.
-EUR sentiment going forward will swing on further developments in Rome, with
this morning's E6bln BTP auction also seen as a key litmus test on Italian
economic concerns. US ADP employment change and secondary Q1 GDP reading are
also due this afternoon.

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