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FX markets are mixed, if not relatively flat in the aftermath of the publication of the European stress test results on Friday. In the aftermath of what many considered to be relatively lenient assumptions on the European financial system, the euro is slightly weaker against the USD, which by remains stronger against all but the pound sterling. The next leg of the European crisis now rests on the back of the financial institutions, which are likely to try raising capital to compensate for the 7 of 91 financial institutions deemed underfunded in the event of a worsening of economic conditions. The success of these attempts to raise capital could very well determine the fate of the euro in the coming weeks. In the mean time, Euro/USD is down 0.13 cents to 1.2896, USD/CAD up 0.18 cents to 1.0376, USD/Yen up 0.10 points to 87.56, GBP/USD up 0.03 cents to 1.5428, and AUD/USD down 0.13 cents to 0.8943.

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