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Flash: EUR and GBP may continue to firm - RBS

FXStreet (Bali) - Greg Gibbs, FX Trading Strategist at RBS, shares his view on the FX majors.

Key Quotes

"EUR and GBP may continue to firm with improving confidence in Greek bonds and stronger UK activity indicators. The UK inflation report on Wednesday may work against GBP somewhat."

"AUD is looking squeezy supported by recent data improvement but we are watchful for any evidence of financial stress in China. Chinese rates have edged a little higher and China credit growth data are due this week.The Australian labour data on Thursday will be key, but price action is supportive of AUD."

"We note that the further rise in Japanese inflation expectations since October last year point to further USD/JPY upside potential. But ebbing measures of confidence suggests Japanese authorities may need to do more to bolster its push for inflation."

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Kiwi is trying to hold ground above 0.8300

Kiwi follows where Aussie leads nowadays as the currency pair moved higher this morning and even managed to go through an important resistance of 0.8300.
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