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Dollar resumes uptrend as 10y yields..........>

FOREX
FOREX: Dollar resumes uptrend as 10y yields resolutely hold the 3% mark
-The dollar index touched the highest levels since early January and is fast
approaching the 200-dma as FX markets continue to follow the lead of bond
yields. With the 10y yield (and wider Treasury yield curve) touching multi-year
highs for another consecutive session, the stronger dollar pressed most major
pairs to multi-month lows.
-Particular pain was seen again in NZD/USD, which is suffering its seventh
consecutive daily decline and has fallen over 4.5% from the recent peak. Options
markets remain relatively bearish on the currency, with 1w risk reversals
touching multi-week lows today.
-EUR/USD remains on the backfoot and the option expiry calendar is gaining
attention: over E5.2bln of options are due to expire at the 1.22 handle
tomorrow, which is bound to influence post-ECB trade.
-Barring the move in the USD and NZD today, all other majors looked relatively
non-committal ahead of tomorrow's ECB rate decision and Friday's US advance GDP
numbers.

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