Forex Flash: EUR/USD should enjoy further legs up - NAB

FXstreet.com (Barcelona) - NAB strategists just published its daily Asia open remarks, and by the tone of the report, they sound confident that the EURUSD 1c gain, "in part be related to a desire by global fund managers to load up on European financials after the aforementioned BCBS - Basle Committee on Banking Supervision - news" they say, has more legs to the upside.

The bank adds that ahead of the ECB monetary policy decision on Thursday, "while there is a chance of a cut to the refi rate and/or the deposit rate, 'no change' is the more likely outcome in our view..." NAB says, linking earlier EUR weakness in large part by the expectations of a possible rate cut, thinks the central bank will hold its fire, and this "could well provide additional support for the single currency" NAB notes.