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Dollar Swings Higher With Stocks

FOREX

The dollar's bounce from the Tuesday lows extended well into the Wednesday session, boosting the USD index to new weekly highs. Dollar gains came alongside a further rally in US equity markets, with the S&P500 and NASDAQ Composite hitting new alltime highs at the open. These gains came despite falls in some of the more watched names including Apple and Tesla.

USD gains came at the expense of the single currency, with the EUR slipping against most others in G10. EUR falls follow ECB board member Lane acknowledging late Tuesday that the EUR/USD rate does "matter" when it comes to setting monetary policy.

NZD struck new multi-year highs in early Wednesday trade, but outperformed throughout following RBNZ's Orr stating the bank have "no concern" with the exchange rate. NZD/USD topped out at $0.6789, the highest since July 2019.

Australian trade balance, Caixin services and manufacturing PMI and final services/composite European PMIs are all due Thursday. In the US session, focus turns to US weekly jobless claims and the ISM services index.

The central bank schedule is similarly busy, with BoJ's Kataoka, BoE's Bailey & Ramsden, ECB's Schnabel and Fed's Evans all due to speak.

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