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Greenback Fades Accompanies Yields Lower, While Equities Gain

CROSS ASSET
  • Fading USD following the US cash open helping flatter the likes of EUR/USD, GBPUSD at current levels. EUR/USD has now touched a new multi-week high, clearing the Friday (and earlier Monday) high to narrow the gap with mid-June's notable upside level of 1.1012. Clearance here puts rates at best level since early May.
  • Greenback fade has been relatively persistent since ~0900ET, mirroring the pull lower in the US 10y yield as well as the tick higher for US equity futures across NY hours.
  • Publication of the Manheim used car index has drawn some focus: recall the used vehicle index slipped 4.2% in June, marking the fastest pace of price decline since April 2020. On a Y/Y basis, the decline was 10.3%. Price update comes ahead of this week's CPI report - the previous May figure for used car prices was -4.2% and as such may come under more pressure this week.

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