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MNI: FOREX: Dollar dumped as Europe carried the......>

MNI, NEWS
MNI: FOREX: Dollar dumped as Europe carried the 'sell dollar' narrative amid
holiday-thinned trade.
-After USD/CNH touched a two-year low, European markets carried the theme and
pushed both EUR/USD and GBP/USD to fresh multi-year highs. 
-Optimism on a German coalition deal and continued speculation the ECB will be
more hawkish this year (stemming from last week's ECB minutes) have driven
EUR/USD to a fresh three-year high at $1.2297.
-USD selling also flattering GBP/USD, but price action capped at resistance
ahead of the $1.3825 level.
-JPY trades mixed, but focus of USD/JPY was on touted bid interest ahead of
Y110.50, which held throughout the day before breaking and opening an extended
move lower for USD/JPY. Rate briefly touched Y110.34 before retracing.
-MLK Day market holiday saw US treasury and equity markets closed, so volume was
thin and liquidity hurt.
-Japanese PPI due overnight, with European session seeing the release of German
and UK CPI as well as US Empire Manufacturing.

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