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EUR/USD Fades, Chews Through Tuesday Gains

EUR
  • EUR/USD fading headed into the NY crossover, with the pair plumbing new lows of 1.0940 at typing. Move coincides with EUR/JPY operating close to the day's lowest levels, with only EUR/GBP holding in positive territory after this morning's softer-than-expected UK CPI.
  • The ~50 pip fade off yesterday's highs prompts a further retracement of yesterday's rally in the pair, with 1.0915 the next downside level ahead of 1.0889 and the 200-dma of 1.0834.
  • Volumes ahead of average for this time of day thanks to the surge in activity alongside the UK inflation release. Focus turns to the US existing home sales release at 1500GMT alongside consumer confidence.
  • Fed's Goolsbee, Harker are all set to speak after ECB's Lane appears in Dublin at 1400GMT/0900ET.

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