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Asian FX continues to underperform......>

DOLLAR-ASIA
DOLLAR-ASIA: Asian FX continues to underperform the rest of the world, with the
ADXY failing to mount much of a bounce off of its 12-month lows around 106.10.
The ADXY is at its weakest level in 2 months versus the EM basket, and at its
weakest in 3 months against the euro. 
- The yuan has been the main driver of Asian FX weakness but the recent weakness
apparent in the Japanese yen, with USDJPY breaking into a new trading range, may
provide the impetus for further ADXY underperformance. 
- Asian FX weakness has the potential to trigger another leg higher for the USD
globally. 
- The weakness in Asian FX and strength in the EUR has seen the EUR's real
effective exchange rate close in on its March high, which could weigh on
expectations for Eurozone interest rates.

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