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EURAUD Sinks as Rescue Drags On
The euro is under pressure as Europe’s unity is again in question. While most major central banks opened their balance sheets to revive their economies, the clash between Germany’s constitutional court and the European Central Bank has added a layer of uncertainty.
The ECB will have to justify its overly stretched asset purchase program or may lose Bundesbank’s support. Perhaps this week’s GDP number will do Lagarde a favor. A low reading may inject a sense of urgency and put the single currency back on track.
The pair is heading towards 1.6110, while 1.7100 around the 30-day moving average is key resistance.
USDJPY Weakens on Negative Rates Rumours
The US dollar continues to drift lower against the Japanese yen despite businesses reopening across states. Markets are wary of a worse-than-expected downturn, which could force the Fed into uncharted territory.
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