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US Dollar Consolidates At Two-Month Lows, JPY and CHF Firm

  • The greenback is seen one tenth of a percent lower on Thursday, broadly consolidating the sizeable move seen during yesterday’s session. A turn lower in equity indices lent support to the likes of the Japanese Yen and the Swiss Franc.
  • USDJPY (-0.47%) completed a full point move to the downside, following Wednesday’s break of 115.00, with the pair trading with a consistently offered tone through the NY session. The pair has now breached both the 20-day EMA and the 50-day EMA - at 114.22. This suggests scope for a deeper sell-off, potentially targeting 113.56, low Dec 21.
  • Similarly, USDCHF fell 0.4% and briefly broke below some previous lows through the 0.91 handle.
  • Elsewhere, ranges remained tighter compared to yesterday, however, EUR, AUD, GBP, NZD and CAD did all extend on their gains made yesterday.
  • In emerging markets, Russia saying Ukraine talks hit a 'dead end' have diminished the chances of diplomatic resolutions and in turn have heavily weighed on the Ruble. USDRUB has risen close to 2% above the 76.00 mark. The break strengthens the bullish case and opens 78.0406, Apr 7 high.
  • Chinese trade balance is scheduled overnight before monthly GDP/IP data will be released from the UK. December US retail sales and industrial production data will headline in the final US session of the week.

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