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Trend Outlook Remains Bearish

CROSS ASSET
  • Post-NFP risk-off hitting reverse as short-covering in Treasuries drags yields and undermines the earlier USD rally.
  • EUR/USD and GBP/USD still shy of pre-data levels, but they're closing the gap - and fast. Equities also rallying off lows to trim the gap with pre-data levels to around 10 points.
  • No specific newsflow or headlines to trigger the reversal, with markets further digesting the NFP report and potentially turning focus to the softer-than-forecast average hourly earnings.

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