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13 Mar 2013
Forex Flash: Major Soul Searching after Quiet Day - OCBC Bank
Emmanuel Ng of OCBC Bank notes that global currencies took a breather and engaged in some soul searching on Tuesday with the majors ending mixed against USD on cited position adjustments and little shock value from the days headlines.
Further, he notes that a timely reminder from the Bundesbank´s Weidmann on the potential uncertainty for the Eurozone served to anchor EUR/USD. Meanwhile, Ng continues to note rhetoric from deputy BOJ governor nominees also cemented the view that the new leadership at the central bank would be in favor of further monetary easing, fueling market static about possible unorthodox measures at, or even before, the next BOJ outing on 3-4 April 13. On other fronts he writes, “the GBP was hit by disappointing industrial production figures although the GBPUSD managed to bounce off intra-day lows below 1.4850.”
Further, he notes that a timely reminder from the Bundesbank´s Weidmann on the potential uncertainty for the Eurozone served to anchor EUR/USD. Meanwhile, Ng continues to note rhetoric from deputy BOJ governor nominees also cemented the view that the new leadership at the central bank would be in favor of further monetary easing, fueling market static about possible unorthodox measures at, or even before, the next BOJ outing on 3-4 April 13. On other fronts he writes, “the GBP was hit by disappointing industrial production figures although the GBPUSD managed to bounce off intra-day lows below 1.4850.”