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Currency Analyst since 2010

EUR/USD fell to 12-year low

EUR/USD touched new 12-year low at 1.0665. The euro is under pressure as the European Central Bank has started quantitative easing (QE) this week. Euro zone’s bond yields dropped to the record minimums. Another source of the market’s pessimism is Greece as it’s still not clear when it will get the bailout money. The nation will resume talks with creditors later today.

GBP/USD is trying to hold above support in the 1.5030 area. The Bank of England’s Governor Mark Carney said yesterday that it would be “extremely foolish” to further ease monetary policy as inflation in Britain is so low mainly because of the low oil price. Traders are awaiting UK industrial and manufacturing data.

USD/JPY has spiked to 122.00 on Tuesday, but didn’t manage to hold there and closed at 121.20. Japanese machinery orders declined, but not as much as expected. Next publications in Japan are BSI large manufacturing and tertiary industry index data.

AUD/USD tested levels below 1.5600. Aussie was hit by the weak data from Australia’s main trading partner, China. Chinese industrial production, retail sales and investment figures came out lower than expected. The Reserve Bank of Australia Assistant Governor Christopher Kent said that despite its fall, Australian dollar remains relatively high given state of economy.

NZD/USD fell to 0.7230 ahead of the Reserve Bank of New Zealand’s meeting later today.

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