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EUROZONE ISSUANCE

EGB supply for W/C 21 June, 2021: Upcoming

EUROZONE ISSUANCE

EGB supply for W/C 21 June, 2021: Recap

USDCAD TECHS

Outlook Remains Bullish

EUROZONE T-BILL ISSUANCE

Bill Supply For W/C Jun 14, 2021

GBP

BoE Day, Changes Expected

AUDUSD TECHS

Corrective Cycle

DOLLAR
DOLLAR: Barclays believe markets are "overreacting to the subtle shift in recent
Fed rhetoric, particularly in the context of the USD. The Fed has little
tangible reason to pull back from its prospective tightening path now:
continuing fiscal stimulus, rising aggregate household earnings, solid household
balance sheets & savings rates, & still-accommodative financial conditions all
point to sustained above-trend US growth, while inflation and financial
stability risks lurk in the background. Recent notes of caution relate either to
concern that foreign growth may drag more than expected on an otherwise robust
US economy or uncertainty over the neutral level of Fed funds. The former merits
caution but is second order for US growth, and the latter is nothing new. In the
context of the USD, a dampening of the Fed's projected tightening path caused by
unexpectedly weaker non-US growth is unlikely to grant relief from USD strength,
particularly for EM FX. While a shallower Fed path may decrease the absolute
divergence of US interest rates from other economies, it likely would not on a
risk-adjusted basis, and the broader (unbounded) returns to capital differential
could widen. As an alternative safe haven, the JPY may be an exception"
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com