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5 Mar 2013
Forex Flash: Turnaround Tuesday lacks conviction - BBH
The stage for Turnaround Tuesday was set yesterday when the euro and sterling held the pre-weekend lows and the Dollar Index did not extend last week's gains, according to the BBH analyst team.
"Yet given the news stream and market positioning, the turnaround appears to lack conviction", they say. "The euro ran into offers near $1.3080 and sterling bears took a stand near $1.5200".
But stronger turnarounds than the dollar can be found in China and Italy, BBH comments. Italian bonds and stocks which fell yesterday are recovering today.
"Yet given the news stream and market positioning, the turnaround appears to lack conviction", they say. "The euro ran into offers near $1.3080 and sterling bears took a stand near $1.5200".
But stronger turnarounds than the dollar can be found in China and Italy, BBH comments. Italian bonds and stocks which fell yesterday are recovering today.