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Dollar, Treasuries Retrace Small Portion of Wednesday Move

CROSS ASSET
  • The greenback is clawing back some lost territory early Thursday, with EUR/USD being dragged off the Weds high of 1.1368 but still holds well above the 1.13 handle. The US curve has shifted slightly lower, with the 10yy off 1bps to retrace a small part of yesterday's moves. Subsequently, equity markets sit in very minor negative territory, evident in the Nikkei 225's 0.4% lower close.
  • Presidents Biden and Putin hold a call today to discuss the ongoing tensions in eastern Ukraine, with a spokesman yesterday stating Biden will offer Russia a diplomatic solution to avoid further unrest and de-escalate tensions. The call follows the US presenting intelligence to European partners that suggested Putin was building troops on the border and could launch an invasion as soon as early January. The call is scheduled for 1530ET/2030GMT.
  • Focus for today rests on the MNI Chicago PMI due at 1445GMT - with markets expecting the data to improve marginally to 62.0 from 61.8 previously. Weekly jobless claims also cross, with consensus looking for a 206k IJC - in line with the prior reading.

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