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Greenback Continues to Push Higher

USD
  • The USD extends gains in recent trade to pressure most major pairs to fresh intraday lows. The USD index is now comfortably back above the 90.00 level and is the main currency driver in what's been a relatively quiet session so far. There are no real concurrent market moves across US yields or equity markets to drive, which may suggest this move is driven largely by position-squaring ahead of a busy Fed speaker slate later today.
  • Markets may continue to be in short-covering mode after Friday's CFTC release showed leveraged funds continue to pare their net short position from the largest net short since 2018 posted in mid-March.
  • The USD index eyes Friday highs of 90.441 initially, which coincides with the 23.6% retracement of the March - May downtick. Beyond there, the 91.026 Fib and 100-dma at 91.069 could provide direction.

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