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BBDXY Briefly Closes ISM Services Gap Lower, Before Moderating from Extremes

USD

Note that move higher in yields that we flagged elsewhere triggered some USD strength, with the U.S. Tsy curve now bear flattening on the day.

  • EUR/USD showed through its Monday low, facilitated by yield differential moves generated by the general twist steepening seen on EGB curves vs. the bear flattening on the Tsy curve.
  • GBP/USD failed to test Monday lows, with upticks in yield in the front end of the Gilt curve matching that seen in Tsys (on the day).
  • The USD move has plateaued, with the BBDXY session off bests, after briefly closing Monday’s ISM services gap lower on the run higher, with Tsys finding a bit of a base and as USD/CNH fails to breach YtD highs (just).
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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