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Surge in Volumes Triggers EUR/USD Rally

FOREX
  • Greenback extending losses further in recent trade, helping aid EUR/USD to a new daily high of 1.0985. We're seeing the best volumes of the day on this move higher: EUR futures have seen close to 3k contracts trade on the move for a cash equivalent of $400mln.
  • Rally in spot narrows the gap with decent option interest at the $1.10 handle: E1.06bln set to roll off at that strike for today's NY cut.
  • Recall the solid equity rally this month may prompt month-end FX rebalancing flows to be USD negative - an effect that could be brought forward given the staggered nature of market opening/closings across the next week or so.

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