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Greenback Aligning With Equities Rather Than Yields

USD
  • USD gaining further in recent trade, extending the price action seen throughout the Tuesday session as the USD Index makes a clear break of the 50-dma resistance at 92.6157. As a result, new session highs printed for the greenback against EUR, CAD GBP and others.
  • In contrast to yesterday's session, today's USD strength comes alongside consolidating US yields, with the 10yr yield well off both yesterday's and the Tuesday highs.
  • As such, it appears today's USD price action is more closely following equities, with the move coinciding with a further deterioration in the e-mini S&P, which sits lower by around 20 points.

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