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Flash: What’s the sentiment around the EUR/USD today? – Commerzbank and Westpac

FXStreet (Edinburgh) - The single currency is now posting marginal losses in the high-1.38s after opening in the 1.3905/10 area, ahead of key inflation figures in the EMU due later (0.8% YoY exp.).

According to Axel Rudolph, Senior Technical Analyst at Commerzbank, “we see minor negative divergence with the daily RSI, though, but the market stays bid and will remain so while above the 1.3772 short term support line. Support above it comes in between last week’s low at 1.3834 and the February high at 1.3826”.

In addition, the research team at Westpac Global Strategy Group assessed, “We suspect EUR/USD will falter into 1.40 in the week ahead. The complexion of the US data should look firmer with the calendar heavily loaded with releases that are vulnerable to a corrective bounce after weakening sharply last”.

USD/JPY dropped all the way to the two month support line at 101.20 - Commerzbank

Axel Rudolph, Senior Technical Analyst at Commerzbank notes that USD/JPY suddenly fell out of bed and slipped all the way to the two month support line at 101.20 last week where we expect it to hold today.
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Asia EM Express: PBOC doubles yuan daily trading band

Over the weekend the People's Bank of China announced that it would increase the daily trading range of USD/CNY from 1% to 2%, taking affect on March 17. This decision is possibly another sign that Beijing is gradually lessening the central bank's intervention and increasing the role of market forces.
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