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FOREX
FOREX: Release of a stronger than exp. U.S. labour mkt report prompted strong
USD demand on Friday which drove EUR/USD to an initial low of $1.1562, extending
to $1.1551. Pre-data the market had seen USD sales which left USD shorts open to
a squeeze on release. USD strength added to the downside pressure on the AUD
allowing AUD/USD to extend its recent easing to a fresh YTD low of $0.7099.
Pressure was also seen in NZD/USD though AUD/NZD was able to further extend its
lows to N$1.0865.
- USD/JPY recovered off its Asian low of Y110.38 through the European morning,
gaining an added boost to Y111.25 on NFP react but the stronger pressure on the
EUR saw EUR/JPY lead USD/JPY back down to Y110.74. Rate was seen settling back
around Y111.00 in late trade.
- Cable extended its recent recovery to $1.3028 as EU's Barnier adopted a
seemingly more conciliatory tone on the Irish border back stop but USD strength
post data added to the corrective pullback as rate drifted back to $1.2920.
- BoE & ECB decisions, U.S. retail sales & CPI, Fedspeak, the Swedish election &
AU labour market report provide plenty of risk events this week.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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