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EUR/USD higher despite slack growth forecasts

EUR/USD higher despite slack growth forecasts

The European common currency went up against the Dollar, even though the economic growth prospects for the eurozone are still bleak and unemployment is forecast to increase later this year. Meanwhile, the cost of the bailout for Cyprus has increased. Cyprus will have to find 13bn Euros to secure 10bn Euros from the European Union and the IMF.

GBP/EUR rose slightly, as fears surrounding the sustainability of Cyprus’s recent bailout package led to a slight drop in demand for the single currency. In the meantime, London’s property market powered a seventh month of increases in U.K. house prices in March as values reached a five-year high.

On the FX Markets, GBP/USD extended to a new 7-week high yesterday. A break above 1.5425 would see the market target the 50% retracement of this year’s fall at 1.5605. Support now comes in at 1.5316 in the short term.

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