FX Week 3 March 2013

FX Week

Broad USD gains extend

The USD ended the week strongly, extending the gains of the previous week as US economic data surprised positively, and in spite of time running out in Congress over the ‘sequestration’ which came into effect yesterday. In the process EUR/USD made new year-to-date lows below 1.30 in the aftermath of the Italian election deadlock, and looks set to weaken further as political parties struggle to form a workable governing coalition. However, the EUR was not alone, with GBP also seeing large losses over the week as UK economic data deteriorated further, while the JPY also renewed its declines following the nomination of Haruhiko Kuroda as Bank of Japan governor.
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