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Greenback Pullback Extends, Putting GBP/USD at New Weekly Highs

USD
  • USD continuing to edge lower in recent trade, helping EUR/USD and GBP/USD to new daily highs - the latter of which trades to a new weekly high and clears the 50-dma of 1.2461.
  • Ebb and flow of risk sentiment remains the driver, with the push higher in the e-mini S&P off the overnight lows coinciding with USD weakness.
  • EM currencies seeing some relief on the move, with USD/ZAR's downtrend off the June high accelerating to press the pair through 19.00 on the way lower - marks a near 5% bounce for the ZAR.
  • Activity so far is very modestly below average for this time of day, with GBP futures activity sitting around 10% below what you'd expect to see for this time of day.

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