Forex Flash: US growth disappointment drives JPY, CAD - UBS

FXstreet.com (Córdoba) - US GDP was a tad weaker than expected with 2.5% annualized growth in Q1 versus expectations of 3.0%. "On Friday the pressure was for once not felt in the EURUSD exchange rate, but in JPY and CAD, which both appreciated versus the USD", says the UBS analyst team.

"In both currencies the short positions have been tremendous and therefore the need for a correction imminent and it is likely to continue", UBS comments. "EURUSD price action is likely to remain blocked until the ECB meeting on Thursday. Then we see a good chance for a weaker euro".