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The USD continued its move higher as..........>

FOREX
FOREX: The USD continued its move higher as 10-Year yields closed above 3.00%.
The DXY touched the highest levels seen since early Jan & is fast approaching
the 200-DMA as FX markets continue to follow the lead of bond yields, which
allowed the stronger dollar to press most majors to multi-month lows against the
greenback.
- Particular pain was seen in NZDUSD, which suffered its 7th consecutive daily
decline & has fallen over 4.5% from the recent peak. Options markets remain
relatively bearish on the cross, with 1w risk reversals touching multi-week lows
today.
- EURUSD continues to operate on the back foot & the option expiry calendar is
gaining attention: over E5.2bln of 1.2200 options are due to expire tomorrow.
- BoC Gov Poloz was on message stressing data dependence, while pointing to the
need for additional tightening going forwards.
- Barring the move in the USD & NZD today, all other majors looked relatively
non-committal ahead of tomorrow's ECB rate decision and Friday's US advance GDP
numbers.
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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