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EURUSD test session low

CROSS ASSET
  • Tnotes pull backs from the high as investors fade off the 10yr yield support seen at 1.7050, printed 1.7122%, likely some paying interest at these levels, after the large spike in Treasuries.
  • This is all Europe led, and specifically , the Italian BTP, and French OAT.
  • The EUR is the second worst performing currency versus the USD in G10 down 0.58%, the SEK is down 1.14%.
  • The EURUSD dip is a function of the broader base USD buying, acting as a safer currency, and the relentless rally in Bund, as desk discount rate hike forward path.
  • Support in EURUSD is at 1.1122, but more importantly 1.1106 Low Feb 24 and the bear trigger

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