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Extending early gains

USD
  • USD remains on the front foot overnight and post the EU Cash Govie open, as risk stays tilted to the downside.
  • Few desks are now flagging the moves in US VOL, with VIX falling to its lowest levels since January 2020.
  • For G10s, AUD is the worst performer and has broken back below the 0.6700 handle, with next support at 0.6679 50.0% retracement of the May 31 - Jun 16 rally.
  • Main focus in FX, is still on the Yen, after the USDJPY printed another fresh high overnight, albeit off its best levels now.
  • Next resistance for the latter, are at 143.81 2.0% 10-dma envelope, followed by 144.40 1.382 proj of the Jan 16 - Mar 8 - Mar 24 price swing.
  • But looking at the bigger picture, there's isn't much until the 145.10 area.

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