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Two Way Price Action For Treasuries Echoed By The Greenback

USD
  • The two-way price action for US treasuries has been echoed in currency markets. A very moderate pop higher for the greenback upon the immediate release of the statement failed to garner any momentum and the USD index saw a swift reversal to fresh session lows.
  • For the major pairs, USDJPY traded as low as 157.36, although has now edged back above 157.50. EURUSD failed to retake the 1.0700 handle and now tracks close to 1.0680.
  • As mentioned, some hawkish tweaks to the statement will likely be scrutinised at the upcoming press conference. However, given the proximity to US non-farm payrolls & the fed’s ongoing data dependence, as well as the subdued holiday price action, sustained momentum for the greenback in either direction might be limited at this juncture.

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