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Govies sees further short covers

CROSS ASSET
  • Further short cover in Govies, after some FM desk were positioned for a stronger US CPI, which was also noted in FX, and the USD bid.
  • Getting the usual Friday afternoon bid into the European afternoon session, favouring safer haven going into the weekend.
  • Gold has seen similar flows, also helped by some pullback lower in the Greenback.
  • The precious metal resistance is seen at $1815.6.
  • US CPI was mostly inline, while the MoM reading saw a 1 tenth beat, but real Average earning disappointed, keeping Bonds underpinned.

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