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Greenback Edges Higher Following Shaky European Cash Open

FOREX
  • Greenback further favoured in early European trade, helping pressure EUR/USD and GBP/USD to new daily lows. A modest uptick in volumes sees just shy of 6,000 contracts trade across EUR futures (cash equivalent ~$794mln) since 0800BST.
  • Modest risk-off pressure driving pricing here, with US10y yields retreating 2bps or so as core DAX, CAC and EuroStoxx cash markets open in the red.
  • Debt ceiling concerns remain top-of-mind for markets, but the latest US-China headlines are reminder of the tensions between the two leaders, despite Biden's expectation that ties will improve "very shortly".
  • 103.295 marks the next intraday upside level in the USD Index, ahead of 103.373 (61.8% retracement for the Thurs - Monday downleg ahead of multi-month highs at 103.624.
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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