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Forex: EUR/USD extends gains after US data

FXstreet.com (Barcelona) - Antecipation of disappointment on the ISM non-manufacturing PMI just released triggered a fall of the greenback on the US session. The EUR/USD climbed the chart from 1.2825 to 1.2861 high, for now, and remains attached to the highest levels of the day. Earlier, the ADP employment report was expected to rise from 198K to 200K in March, but February data was revised much higher, to 237K, and the March figure disappointed at 158K.

Now that today’s data is out, investors will be properly positioning themselves ahead of the ECB monetary policy and Draghi’s press conference. In regard to policy tools the ECB could use, TD Securities analysts said that new LTROs would generally be positive for EUR/USD and German rates “as there is enough excess liquidity in the system that market pricing for normalized money market rates is already pushed back to 2015”. “There is simply limited scope for new liquidity to alter this pricing significantly as it would likely be drained before then. Even a refi rate cut, as long as it comes with no strong language on the potential for a deposit rate cut, would likely eventually be EUR+ as the improvement in sentiment and funding would outweigh the muted moves in STIR”, wrote analyst Richard Kelly.

Mataf.net analysts point to resistance at 1.2875 and 1.2940. On the downside, supports might be found at 1.2790, 1.2755 and 1.2725.

Forex: USD/CHF continues falling to break down the 0.9450 region

After falling around 70 pips from the 0.9520, the USD/CHF has broken down the 0.9500 region to currently test the 0.9450. The pair is 0.35% down on the day and it is trading slightly bearish according to the FXstreet.com Forex studies.
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Forex Flash: 10-year US treasuries trade sideways– RBS

The market continues to see a 1.72% to 2.15% range in 10-year US Treasuries, perhaps persisting through Q2. According to the RBS Research Team, “Key resistance remains 2.15% in 10-years while near-term support is 1.83% - our bias remains to modestly lower yields in the near-term because positioning is favorable (short) and medium-term charts are turning bullish for the first time since early December.”
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