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GBP/USD Makes Round Trip Back to Daily Highs

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  • GBP/USD making a round-trip back to the day's highs as the USD maintains and extends upon the post-PPI pullback. Fuelled by the step lower in US yields (as noted above, Post-PPI feedthrough has dragged 2-Year Tsy yields to the lowest level seen since May ’23) and the rip higher for equities through the cash open, the USD Index is on track to post a negative weekly close - although remains ~0.75% off last week's lows and holds a 0.9% YTD gain.
  • GBP/USD gains through 1.2785 would open YTD highs and bull trigger of 1.2827. Above here, the pair clears the best levels since August of last year.
  • Moves keep the greenback the session's poorest performer, JPY and NZD now the strongest. Kashkari next - non-voter until '26, and no text release scheduled.

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