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[ EUR= Loading... ( ) ] , having briefly risen to $1.25859, its highest level since lateMay and about 2.3 percent above a two-year low of $1.2288 hit lastweek. Market players think there are still massive short positions in theeuro as data from a U.S. financial watchdog showed speculators'short position in the euro was at a record high last week. "This is driven by position unwinding, rather than full-fledgedrisk-on trade. Some are looking to start fresh selling but therecould be more short-covering before that. I'd think the euro couldrise to around $1.2600-$1.2650," said Takahiro Suzuki, vicepresident of forex at Nomura Securities. The euro has an immediate resistance around $1.2600, followed by$1.2671, a level representing the 38.2 percent retracement of itsMay 1-June 1 fall. Speculation of more stimulus from the U.S. Federal Reserve alsohelped bolster risk assets as some of the Fed's top officials beatthe drum for a need of stimulus. Janet Yellen, the Fed's vice chair, laid out the case for moreeasing to bolster a fragile economy as financial turmoil in Europemounts. While Yellen is known to be a dove and her comments did notsurprise markets, other officials, such as Atlanta Fed PresidentDennis Lockhart, also talked about possible need for an action,saying his level of concern had risen since the Fed's Aprilmeeting. Their comments are raising speculation Federal Reserve Chairman Ben Bernanke may drop a clearer hint on further easing athis testimony on the economic outlook before the congressionalJoint Economic Committee at 1400 GMT. "Since the weak U.S. job data, there's been rising speculation ofmore stimulus from the Fed. That is making dollar long positionsuncomfortable," said Katsunori Kitakura, associate general managerof market-making unit at Sumitomo Mitsui Trust Bank. "The market is sensing some actions from policy makers may bedrawing nearer." Auction in Spain In Europe, while there was no concrete progress on steps to supportSpain, European sources said on Wednesday that Germany and EuropeanUnion officials are urgently exploring ways to rescue Spain'sstricken banks. The e-commerce company in China offers quality products such as Mining Cap Lamp , Led Commercial Lighting Fixtures Manufacturer, and more. For more , please visit Mine Safety Lamp today!
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