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26 Mar 2013
Forex Flash: Dijsselbloem gaff sparks fresh EUR weakness - OCBC Bank
FXstreet.com (Barcelona) - Emmanuel Ng of OCBC Bank notes that the Euro saw fresh weakness across the board on Monday on fresh Cypriot concerns (attributed to the comments from Dutch Finance Minister and Eurogroup head Dijsselbloem indicating that the Cyprus banking bailout deal may serve a s template for future bank crises) which also weighed on the other continental currencies.
He adds that there was also market chatter of a possible Italian rating downgrade which also weighed on sentiment. Notably, he adds that CAD and AUD outperformed and held their own against the dollar, even eking out minor gains. Elsewhere, he notes comments from Fed Chairman Bernanke had little discernible impact on markets, with little indication of any inclination to move closer to an exit strategy. Looking ahead, he expects Eurozone related news flow to continue to hog headline space and apart from Cyprus, uncertainty over whether a coalition government can be stitched together in Italy continues to brew.
He adds that there was also market chatter of a possible Italian rating downgrade which also weighed on sentiment. Notably, he adds that CAD and AUD outperformed and held their own against the dollar, even eking out minor gains. Elsewhere, he notes comments from Fed Chairman Bernanke had little discernible impact on markets, with little indication of any inclination to move closer to an exit strategy. Looking ahead, he expects Eurozone related news flow to continue to hog headline space and apart from Cyprus, uncertainty over whether a coalition government can be stitched together in Italy continues to brew.