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Forex: EUR/USD extends its correction lower

FXstreet.com (Barcelona) - The shared currency tested sub 1.3030 levels after the German ZEW Survey came in below expectations. In fact, the Economic Sentiment dropped to 36.3 vs. 42.0 forecasted and the Current Situation fell to 9.2 against the median at 12.0. Further data in the euro area showed that consumer prices rose 1.7% YoY and Core CPI rose 1.5% on a yearly basis.

Lower yields from the Spanish auctions of 6m and 12m Letras seem to be insufficient to spark any optimism around the euro today, ahead of inflation figures and housing data in the US economy due later.

At the moment, the cross is up 0.10% at 1.3050 and a breakout of 1.3150 (high Apr.15) would open the door to 1.3152 (MA100d) and then 1.3163 (high Feb.28).
On the flip side, support levels line up at 1.3027 (MA10d) en route to 1.3006 (low Apr.9) and finally 1.2963 (low Apr.8).

Germany: ZEW Survey – Economic Sentiment down to 36.3 in April

The German ZEW Survey – Economic Sentiment fell to 36.3 points in April, from 48.5 points in March, the Zentrum für Europäische Wirtschaftsforschung reported today. Market consensus pointed to a decrease to 42 points.
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Spanish borrowing costs fall at debt auction

The Spanish Tesoro Público held a debt auction on Tuesday during which it sold a total of 5.07 billion euro worth of 6- and 12- month Letras, exceeding the maximum target of 4-5 billion euros.
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