Flash: Bund pattern confirms bullish view – RBS

FXstreet.com (Barcelona) - Bund levels are updated for the September contract – the market formed a morning star candlestick pattern and closed above 100-day MA, confirming the bullish view.

According to Technical Strategist Dmytro Bondar at UBS, “A break of the 144.94 would be likely to trigger a rally to 144.30 onto 144.55 with a subsequent correction and further bounce to 145.06/45 resistance region. “

The risk level remains 142.95 (a sustained break would cancel the view). We keep longs from 143.25/35 to 144.55/63 onto 145.06/45. “In the long-term, as the 145.06/45 region is reached, I would favor selling amid cross- market signals from the treasury market. The risk level is 146.17.” Bondar adds.

Flash: Less Pressure on ECB to rate cut - DBS Group

DBS Group analysts note that the slight improvement in the business confidence indices, pick-up in May PMI and already-priced in weak 1Q13 GDP growth numbers lowers the pressure on the ECB to reduce the benchmark rates on Thursday.
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Flash: High voltage - Nomura

Nomura strategist Saeed Amen asks, “How has FX vol reacted to large-scale USD rallies?”
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