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-DXY's down for the 7th time in 8 sessions....>

FOREX
FOREX: -DXY's down for the 7th time in 8 sessions with Monday's close below the
50-dma extending Tuesday despite a late session relief rally. This contrasts
with 10yr Treasury yields, which broke higher to trade at two week highs early
Tuesday. What appears to be short-covering in EUR/USD, GBP/USD and the like
pushed the pairs through key resistance levels, pressing the greenback lower
throughout the day.
-CAD is among the strongest in G10 as markets add to their wager that Canada
will join a new NAFTA deal, with the deadline pencilled in as the end of the
week. Mixed equities also lent support to the CHF, which tipped USD/CHF through
the 200-dma for the first time since January.
-Meanwhile, the SEK suffered, briefly touching the lowest levels against the EUR
in nine years on poor retail sales numbers (-1.2% Y/Y vs. Exp. +0.5%), pressing
Scandi FX to the bottom of the FX pile today.
-Focus turns to French and US GDP Wednesday as well as a speech from BoJ member
Suzuki.

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