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EURUSD squeezed to $1.1653 in early.....>

EURO-DOLLAR
EURO-DOLLAR: EURUSD squeezed to $1.1653 in early Asia, its best levels since the
beginning of the month. A combination of broad USD weakness and CNY/CNH strength
on extended react to last Friday's PBOC move to reinstate the use the
counter-cyclical factor for the fixings. But as markets took a pause, profit
take sales emerged to pare early gains. Downside momentum extended to $1.1613 in
Europe, before meeting support ahead of the o/n low ($1.1611). A quiet session
is expected with the UK out for the August Bank Holiday. Also, a worthy reminder
of the very large ($2.4bn) $1.1625 option-expiry for today's NY cut which could
anchor. EURUSD last $1.1618.

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