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Greenback Regains Lost Ground Into NY Hours

USD
  • Having been led by the JPY earlier in the session, the USD is gaining headed through to NY hours, with both EUR/USD and GBP/USD hitting new daily lows.
  • With yesterday marking month-end value date, difficult to see any consistency in month-end flow for the rest of this week, with most sell-side models pointing to moderate USD sales - but others noting potential for corporate USD demand across NY hours this week.
  • Volumes so far Wednesday are below average outside of the JPY, with cumulative EUR futures ~17% below average for this time of day, and GBP markets ~25% below average.
  • Drift in EUR/USD puts the pair within range of one of the more sizeable options set to roll off at today's NY cut - with E1.9bln rolling off at 1.0800-20 today, which could contain prices headed through the 10am NY cut.
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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