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Forex pairs in this Article » EUR/USD, GBP/USD, USD/JPY (Guatemala) - The European and US sessions have been collectively a day of continuations as G10’s are taken to critical levels left right and centre, with US yields firmer and US equities bouncing.

For Euro, the pair suffered on the back of a poorer set of German CPI which of course brings in the concern over whether the ECB needs to act to protect against a deflationary environment. The pair fell to find support eventually at 1.3540.

The worst performer has been the NZD, but there have been no surprises from todays price action for the pair given what had been priced into the unit wasn’t reflected by the RBNZ. The NZD has fared worse post a dovish RBNZ. The market fully expects them to raise rates in March, but the rhetoric didn’t reflect the expectations for a bank that is about to embark on an aggressive tightening cycle. And that’s what is priced in. They noted some ‘moderation’ in the housing market and were also mixed on global growth. The hawkish pricing can be removed from the curve and as such the pair is offered.

Overall, the dollar and the JPY have been targeted as safe havens amongst concerns in the EM’s and also while US equities and US yields were improving. Meanwhile, Sterling has kept to a relatively tighter range and offered through 1.6500 to trade along the pivot at the close of NY.

Main Headlines and events:

Wall Street jumps amid US data and earnings

German Consumer Price Index worry's investors

Gross Domestic Product Price Index

USD Initial Jobless Claims (Jan 24)

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