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EUR/USD plummets amid negative rates talk

FXStreet (Córdoba) - The EUR/USD slumped and broke below the 1.3600 mark during the European session amid ECB's Coeure comments on negative deposit rates.

European Central Bank member Coeure said the bank is considering negative deposit rates "very seriously". Comments smashed the euro, which fell more than 50 pips versus the dollar in a matter of minutes. The EUR/USD printed a 5-day low of 1.3586 and it is currently trading around 1.3590, recording a 0.3% loss on the day.

EUR/USD levels to watch


As for technical levels, next support is seen at 1.3570 (10-day SMA) followed by 1.3551 (Feb 7 low). On the other hand, resistances could be found at 1.3652 (Feb 12 high) and 1.3682 (Feb 11 high).

BoE modifies forward guidance

According to the BoE's quarterly Inflation Report published on Wednesday, the central bank expects to keep rates at the record low level of 0.5% for at least one more year, even if the unemployment rate falls to the MPC's 7% threshold, which is expected already in the first quarter of 2014.
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Flash: GBP/USD buyers around 1.6510 - FXStreet

Valeria Bednarik,FXStreet Chief Analyst notes that Carney gave Pound a boost with a hawkish quarterly inflation report: growth forecast for this 2014 has been reviewed to the upside.
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