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USD Bounces Further, Most Evident vs. EUR

EURO-DOLLAR

EUR/USD extending to hit new lows a few hours out from the conclusion of the ECB rate decision. A very buoyant USD also helping, with UST yields surging over the past hour or so on reports of position unwinding and selling from foreign banks and bond funds.


  • The USD index is bouncing further from the mid-October lows and is narrowing the gap with the 100-dma at 94.320. A break north of here opens the late September highs at 94.742.
  • For EUR/USD, 1.1689 key support has given way, opening the 1.1612 bear trigger.
  • Also worth recalling that the equity sell-off this week has switched/strengthened a number of month-end hedge rebalancing models to signal USD demand into the October close.

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