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Session Recap: EUR on the rise, USD losing the grip

FXStreet (Edinburgh) - Market participants are cashing up recent gains in the greenback, with the US Dollar Index (DXY) surpassing the psychological mark at 100.00 during the Asian trading hours.

The generalized offered bias in the US dollar is allowing the current rebound in the risk-associated assets, with EUR/USD advancing to the mid-1.06s after bottoming out around 1.0490 in early trade. The sterling, in the meantime, has recovered the 1.5000 neighbourhood although a sustainable break above it still remains elusive. The Japanese yen is following suit, with USD/JPY putting the 121.00 key support to the test.

News from Greece highlights the mounting tensions with Germany, with recent appreciations by German finmin W.Schauble in the centre of the debate.

In his speech today, Bundesbank’s President J.Weidmann stressed that inflation expectations in the euro area remain anchored, adding that negative inflation figures are temporary.

EUR/JPY attempts a bounce to 129

EUR/JPY remains elevated during the late-European session, in an attempt to breach 129 handle as the shared currency was strongly bid amid a broad based greenback weakness.
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'ECB measure distorts financial markets' – ECB’s Knot

European Central Bank (ECB) Governing Council member Klaas Knot said today that the measure of the ECB to pump in more than 1,100 billion in the economy until October next year, creates a significant disruption in the financial markets.
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