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Greenback Firms Approaching WMR Fix, Equities Reverse

USD
  • Softer oil/equities has prompted a firming of the US dollar in recent trade. Gains have been broad based with EURUSD now approaching yesterday’s lows of 1.0612 after reaching 1.0674 just an hour ago. In similar vein GBPUSD has had a significant turnaround, dropping around 90 pips.
  • The moves also appeared to gain traction approaching the WMR fix, which incorporates value-date month/year-end.
  • From Barclays: "the passive rebalancing model at month-end points to strong USD buying against all majors in December."

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