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Pressure On Equities Bolstering the USD Index To Session Highs

USD
  • Pressure on major equity benchmarks extending as the US session commences bolstering the greenback in recent trade with the USD index turning positive on the day and extending its most recent upward trend.
    • EURUSD plumbs fresh lows for the week, narrowing the gap with 1.0834 next, the Jul 6 low and a key level. Worth noting, we have E1.3bln of 1.0850 strikes rolling off at today’s NY cut.
    • In similar vein, Cable now trading below 1.2700, extending the earlier weakness prompted by the softer retail sales report. Earlier we highlighted that the Aug 14 low of 1.2621 marks the short-term bear trigger.
    • USDJPY also jumps through the European highs to 145.70 and will target the overnight highs at 145.88.

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