Forex Flash: USD Broadly firmer as Fiscal Cliff comes into focus – BBH
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USD/JPY
FXstreet.com (Barcelona) - The research team at Brown Brothers Harriman note that USD is broadly firmer as risk off trading continues on worries over the US fiscal cliff and the worsening Eurozone economic climate.
They write, "The euro made a marginal new low for this cycle near $1.2720 today before stabilizing a bit. However, the break below $1.2760 yesterday signals an even deeper euro correction that targets the September 5 blow near $1.2500." Looking to GBP, they note that a similar softness with Cable falling in sympathy with the Euro.
The team notes that USDJPY is trading below 80.00 still as the market returns to the old risk off dynamic now favoring a firmer Yen. Elsewhere, European sovereign debt yields are modestly higher despite Greece passing its austerity bill last night as concerns over Spain rise. They note that reports that the ECB is reluctant to start OMTs hardly helped market sentiment but Spain however was able to auction more than the targeted amount of bonds but at a slightly higher price.
They write, "The euro made a marginal new low for this cycle near $1.2720 today before stabilizing a bit. However, the break below $1.2760 yesterday signals an even deeper euro correction that targets the September 5 blow near $1.2500." Looking to GBP, they note that a similar softness with Cable falling in sympathy with the Euro.
The team notes that USDJPY is trading below 80.00 still as the market returns to the old risk off dynamic now favoring a firmer Yen. Elsewhere, European sovereign debt yields are modestly higher despite Greece passing its austerity bill last night as concerns over Spain rise. They note that reports that the ECB is reluctant to start OMTs hardly helped market sentiment but Spain however was able to auction more than the targeted amount of bonds but at a slightly higher price.
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