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EUR/USD Inches to New Daily Lows, In Close Proximity to Sizeable Strike

EUR
  • EUR/USD inches to new daily lows in a slow grind lower, edging through the post-Spain CPI lows of 1.0977. Today's reversal off highs is - at present - no risk to the broader uptrend after yesterday's break and show above 1.10. The Waller-inspired rally helped trigger a fifth session of higher highs overnight, and today's move lower is likely corrective in nature. This has kept the RSI from erring into overbought territory.
  • Spot now trades in close proximity to the largest expiries rolling off at the Wednesday cut, with $1.4bln maturing at 1.0970-75.
  • We note higher-than-average volumes across bond markets today, and it's the same case in currencies as EUR futures volumes sit around 50% ahead of average for this time of day - thanks to a sharp spike in activity that coincided with the soft Spanish CPI print.

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