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Flash: EUR/USD may fail to break strong 1.38 resistance - Danske Bank

FXstreet.com (Barcelona) - Danske Bank Strategists note that the FX markets are probably well prepared for Fed tapering tonight and the market impact should be relatively small.

Key Quotes

“However, given the very flat US money market curve our fixed income analysts see the risk tilted to the upside for short rates.”

“Hence, if anything, we see risk tilted to the downside for EUR/USD today and to the upside for USD/JPY.”

“In respect of EUR/USD we also note that it seems that strong resistance is found around the 1.38-level.”

GBP/USD rises to the occasion

GBP/USD posted an overnight low at 1.6258 before climbing steadily overnight to where it is presently trading at 1.6289.
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USD/JPY ranges following overnight climb

Having climbed from a low at 102.55 overnight, USD/JPY posted a high at 103.01, before losing momentum and ranging into Europe, and presently trading at 102.94.
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