Flash: Euro continues to weather Eurozone woes – Investec

FXstreet.com (New York) - Last Friday, Fitch joined the other two major rating Agencies in stripping France of its AAA-rating and Portuguese bonds continue to fall following calls from the opposition party to renegotiate the bailout terms, reiterates Lee McDarby, Corporate Treasury at Investec.

According to McDarby, “Both of these stories highlight the continuing problems in the Euro area although the Euro itself has weathered them without much trouble so far.” Meanwhile, Bernanke’s semi-annual monetary policy testimonies, on Wednesday & Thursday, will shape sentiment in the same way his speech last week went quite some way in calming fears the Fed was heading for an abrupt exit from accommodative policy.

Flash: Global volatility to lower following QE concerns – BMO Capital Markets

According to Stephen Gallo at BMO Capital Markets, “Fed developments over the last week are in our opinion a confirmation that the first round of QE tapering adjustment in the US yield curve has probably run its course.”
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RBA minutes: policy appropriate, Aug cut not as likely

The June RBA minutes just published showed a slightly less dovish stance by the RBA, arguing that "the Board also judged that the inflation outlook, although slightly higher because of the exchange rate depreciation, could still provide some scope for further easing, should that be required to support demand."
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