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Dollar Drops to Day's Lows Ahead of London Close

CROSS ASSET
  • Post-CPI price action reversing faster and further in recent trade, with the greenback now at the day's lows vs. EUR, GBP and CNH as markets adopt a risk-on posture. Around an hour out from the cash open, the e-mini S&P continues to chew through the the 100 point drop posted following CPI and is now 15 points shy of breaking into positive territory.
  • Consumer discretionary and energy names leading gains across the S&P500, with financials the laggards as the curve flattens. Moves come just ahead of big bank reports kicking off tomorrow with JPM and MS on the docket before BNY Mellon, Citi, Blackrock, State Street and Wells Fargo Friday.
  • CAD holding the bulk of the post-BoC gains, with USD/CAD showing below the 1.2950 level and challenging the current bullish trend conditions. 1.2936 undercuts as the next key support, marking the July 8th low.

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