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11 Apr 2013
Forex Flash: Euro remains stable against USD for now - BTMU
FXstreet.com (Barcelona) - Lee Hardman, FX analyst at the Bank of Tokyo Mitsubishi UFJ notes that the Euro continues to remain relatively stable against USD at around the 1.30 level, providing an anchor of stability in the current markets so far in 2013.
He adds, “In the near-term the pair is being pressured lower as the ECB moves closer to easing monetary policy given the weakening growth and inflation outlook. However, the recent decline in Spanish and Italian government bond yields is providing offsetting upward pressure for EUR/USD. The ECB’s OMT announcement last year encouraged Japanese investors back into core euro-zone bonds. We still doubt that the BOJ announcement will now encourage a move back into Spain and Italy.”
He adds, “In the near-term the pair is being pressured lower as the ECB moves closer to easing monetary policy given the weakening growth and inflation outlook. However, the recent decline in Spanish and Italian government bond yields is providing offsetting upward pressure for EUR/USD. The ECB’s OMT announcement last year encouraged Japanese investors back into core euro-zone bonds. We still doubt that the BOJ announcement will now encourage a move back into Spain and Italy.”