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Upside continuation on the European open

USD
  • Further new highs across the board for the USD, as Yields continue to spike across the Global, with investors pricing greater hikes in the shorter terms, with longer holds in the longer term (hence the flattening in curves).
  • OIS are pricing pretty much 1.5% of rate hike for the US in 2022 (7 x 25bps).
  • USD is near session high on the European open against the EUR, CHF, GBP, AUD, NZD.
  • EURUSD support moves up to 1.1360, followed by 1.1326 Bear channel top drawn from the Jun 1, 2021 high
  • No impact in GBP from the mixed Growth data, a 1 tenth beat on the YoY and 1 tenth miss on the QoQ

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