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EUR/USD breaks bellow 1.3350

FXStreet (San Francisco) - The Euro is extending its decline versus the US Dollar and after falling around 60 pips from 1.3390, the EUR/USD broke below the 1.3350 level and now it is testing 1.3330 lows.

Currently, EUR/USD is trading at 1.3340, down 0.32% on the day, having posted a daily high at 1.3394 and low at 1.3337. The hourly FXStreet OB/OS Index is showing neutral conditions, alongside the FXStreet Trend Index which is slightly bearish.

EUR/USD sentiment

Draghi "didn't tell us anything we didn't already know, but he did make a very clear case for why core positions should be short EUR/USD and short EUR/GBP," comments Jamie Coleman from FXBeat. "Several times noting that ECB policy will diverge from policy in the US and UK for years to come, a point we've made repeatedly."

BoE on hold on muted wages and uncertain amount of slack in labor market - ING

James Knightley from ING suggests that the BoE was content to leave policy unchanged at the August meeting despite satisfactory UK GDP growth, due to the fact that at the same time wages remain muted and the amount of slack in labor market is still uncertain.
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GBP down against the greenback - FXStreet

FXStreet Chief Analyst Valeria Bednarik points out that following the BoE's meeting, during which the central bank held policy steady as expected, the GBP/USD is trading a few pips above the 1.6822 daily low at 1.6829.
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