EUR crosses resume move higher
What happened overnight
* Euro area M3 data shows deposits pick up in Italy, Greece and Ireland
* South Africa Q2 GDP in line with expectations at 3.2%qoq
* Fonterra cut 2013 forecast payout for New Zealand dairy farmers
The euro and EUR crosses moved higher overnight, as investors took profits on EUR-funded long positions in risk-sensitive currencies such as AUD and NZD. The Scandinavian currencies are the only currencies reporting gains against the EUR, along with the ZAR supported by strong Q2 GDP data. EURUSD is 0.4% higher at 1.2548, USDJPY remains stuck in a tight range at 78.66. Equities remained in mixed territory overnight, as concerns of a hurricane-driven surge in crude prices weighed on the growth outlook. Peripheral sovereign markets were also treading on thin ice overnight, with moderate spread widening in Italy and Spain, in spite of successful actions of inflation-linked bonds in the former and bills in the latter.
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