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EUR/USD approaches to 1.0700 as dollar slumps

FXStreet (Córdoba) - EUR/USD rose more than 100 pips over the last minutes and reached a 4-day high as on the top of disappointing US data, the IMF downgraded US growth outlook, weighing on the greenback.

While US retail sales grew less than expected (0.9% versus 1.1% exp) and NFIB business optimism index unexpectedly dropped in March (95.2 vs 98.4 exp), the IMF cut their US growth forecast for 2015 and 2016 to 3.1% versus 3.3% estimated in January.

The dollar fell sharply across the board, with EUR/USD climbing as high as 1.0691 in recent dealings. At time of writing, the pair is trading at 1.0685, recording a 1.12% gain since opening.

EUR/USD levels to watch

Immediate resistances for EUR/USD are now seen at 1.0700 (psychological level), 1.0713 (Mar 31 low) and 1.0763 (10-day SMA). On the flip side, supports could be found at 1.0523 (Apr 13 low), 1.0500 (psychological level) and 1.0462 (12-year low Mar 13).

World economy seen rising 3.5% in 2015 – IMF forecast

The International Monetary Fund (IMF), in its World Economic Outlook, kept its 2015 global growth forecast unchanged at 3.5%. The growth forecast for 2016 was revised higher to 3.8% vs 3.7% in January. The Emerging market growth forecast was kept unchanged at 4.3%.
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EUR/GBP capped by 0.7230

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