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Forex: EUR/USD consolidating around 1.2850/55

FXstreet.com (Barcelona) - The shared currency keeps the negative tone on Wednesday, hovering over the area of 1.2850/55, as the greenback continues its buoyant march.

Against the backdrop of rumours involving the Fed, John Kicklighter, Senior Currency Strategist at DailyFX, commented, “While global central banks like the BoJ, ECB and BoE are warming to further easing; the Fed ranks have grown more outspoken of the risks of excessive stimulus”.

The cross is now retreating 0.38% at 1.2871 and a violation of 1.2747 (low Apr.4) would expose 1.2679 (61.8% of 1.2042-1.3711) and finally 1.2662 (low Nov.13).
On the flip side, the next hurdle is located at 1.2943 (high May 15) ahead of 1.3030 (high May 14) and then 1.3048 (MA21d).

Forex Flash: The European banking debate lingers on – Deutsche Bank

The European debate continued over the details of a European banking union and bank resolution. The ECB's Asmussen publically stated that progress needed to be made on banking union negotiations and a framework on the distribution of losses are needed in the event of future bank failures.
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Forex: USD/JPY bounces at 101.85; back to 102.50

After declining from a 4 ½ year high of 102.76 to trade at intra-day lows around 101.85, the USD/JPY bounced back to price above the 102.00 area and to test the 102.50. Currently the pair is trading at 102.45.
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