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Forex: USD/JPY capped at 97.67

FXstreet.com (Barcelona) - The USD/JPY made a second upside attempt in mid-European session and it failed again at 97.67 high. The pair is now holding its gains above 97.50.

“We expect the assessment of the economic and inflation outlook to be downgraded, reflecting a shifting emphasis relative to March when the prospect of a labor market recovery was beginning to tilt the balance towards tapering. This time around the rising uncertainty about the impact of fiscal austerity on growth and further moderation in core inflationary pressures will likely shift the balance back to an easing bias”, wrote TD Securities analyst Alvin Pontoh.

“The outlook here remains bearish below 97.70 resistance area, for a slide towards 96.40”, wrote Deltastock.com analyst Stoyan Mihaylov, pointing to crucial resistance at 98.18.

Forex: USD/CAD testing lows around 1.0050/55

The Canadian dollar continues to gather pace against the greenback on Wednesday, dragging the cross to 11-week lows around 1.0050/55 ahead of the US ADP report and FOMC meeting...
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Forex Flash: UK manufacturing PMI rise on export orders from everywhere but the Eurozone – TD Securities

The UK manufacturing PMI came in at 49.8 in April, following 48.6 in March and above consensus of 48.5. TD securities analysts commented: “Details of the report showed that the improvement was driven by an uptick in new export orders from everywhere but the Eurozone, while employment continued to contract”, wrote analyst Marcin Budkiewicz. “While producers did see some lower prices, they also reported that the weakness in sterling was pushing up some prices, a theme we think will be echoed in the May Inflation Report and the reason why the MPC does not want to talk GBP any lower at the moment”, Budkiewicz added.
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