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Dollar Shrugs Off Short-End Pricing, More Closely Tied With 30y Yield

CROSS ASSET
  • USD sales persist through the London close, with the latest bid in Treasury futures adding to the downside pressure. EUR/USD and GBP/USD have now cleared their pre-NFP highs, allowing EUR/USD to narrow the gap with 1.0592 and 1.0617, the next intraday upside levels of note.
  • The USD sales come despite the OIS-pricing of the Fed's November 1st meeting holding the vast majority of the data-triggered 1.75bps rally - with the USD instead more closely tied to the longer-end of the yield curve rather than the very short-end: US 30y yields have wholly reversed the NFP spike, narrowing the gap with 4.90%

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