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Forex pairs in this Article » EUR/USD (London) - Yesterday, the Dow climbed 0.8 percent to record highs at 15,750.29 while the S&P 500 gained 0.4 percent to 1,769.75 after climbing to 1,773.74 earlier in the session.

However US session momentum did not carry over into the Asian session on concerns that gains had outpaced earnings as well as anticipation of US data. The Nikkei lost 0.76 percent, with Toyota income projections falling short of consensus market expectations.

The Aussie dollar came under some pressure thanks to a weaker-than-expected jobs report at +1.1k. Unemployment remained at 5.7 percent. Despite dovish undertones coming out of the RBA of late, the weaker than expected labour market report remains within the central bank forecast range and did not push up bets on further easing.

European markets will today be dominated by the ECB rate decision. Last weeks inflation miss pushed expectations for central bank action with Eurozone inflation printing at 0.7 percent versus a 1.1 percent estimate. The miss put the euro under pressure with some predicting an ECB rate cut. But downward pressure on the euro has unwound this week with expectations that the usually cautious ECB will hold off on any easing or LTRO moves pending further data.

EUR/USD is at USD1.3520, pushed up yesterday by a MarketNews quoted source from the ECB saying that a further rate cut would be unlikely.

The Bank of England rate decision will be a complete non-event with no rate change, no change in easing, and no statement.
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