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Greenback Consolidates After Tuesday Dip

FOREX
  • The dollar sits in minor positive territory ahead of NY hours, recovering modestly the data-inspired dip yesterday. The USD Index is well off Tuesday's 108.077 low print, but holds below cycle highs of 109.27 seen in Asia-Pac trade earlier this week.
  • The JPY is recovering alongside the greenback, putting EUR/JPY at new weekly lows and within range of 134.95, the key pullback support from earlier this month. Equity futures are distinctly mixed and don't point to any material improvement in sentiment at the Wall Street opening bell later today, with European cash indices little changed on the day.
  • Nonetheless, the CHF rate extends recent strength, with EUR/CHF nearing 0.9553, the cycle low and the lowest level printed since 2015. Downtrendline support drawn off the mid-May lows for the cross could then provide some support at 0.9513.
  • Economic data and news across the European morning have been few and far between, with markets on watch for any further details ahead of this weekend's Jackson Hole policy symposium, with the full schedule touted for release ahead of the formalities late Thursday
  • Prelim durable goods data crosses from the US, with pending home sales also on the docket.
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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