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Greenback Rollover Snaps Streak of Higher Lows

USD
  • Latest downtick in the USD snaps the streak of higher highs in the USD Index, as the EUR/USD rally presses the DXY through yesterday's low. Having been the strongest performer across the European morning, USD is now the weakest in G10, helped by softer yields and the sharp rally for equities.
  • Despite the softening USD, most major pairs are within recent ranges, leaving notable resistance/support untroubled for now. The EUR/USD rally puts spot within range of a more sizeable option strike rolling off tomorrow at $1.0825(E1.1bln).
  • The move also provides some relief for USD/JPY, which has failed the test on Y156.00 overnight to reverse back to flat through the London close.

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