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EUR/USD Under Additional Pressure as Front-End Vols Stabilize

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  • Continued dollar demand helping pressure EUR/USD to a fresh daily low at 1.0917, putting the pair off by 50 pips on the day.
  • Latest wave of USD buying comes despite little movement in rates or equity markets, but the front-end of the vol curve is seeing better support after the pressure noted earlier in the week: EUR/USD 1w implied vols hit multi-month lows yesterday of 6.955 points - vol markets have only traded below this level on two occasions over the past 15 months or so.

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