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USD Bouncing as Stocks, Risk Appetite Moderate

FOREX

After an impressive rally into the Friday close, stock futures have moderated in the US in likely profit-taking after a strong start to 2021. With equities still the driver, currencies are taking the risk-off queue, boosting the USD and other haven currencies throughout Asia-Pac and European hours.

USD strength has pressured EUR/USD through Friday's lows of 1.2193 to hit the lowest level since mid-December. 1.2130 marks next support, the Dec 21 low.

Commodities are moderately softer, leading NOK and other oil-tied FX lower. Nonetheless, USD/NOK remains well within range of the multi-year lows posted Friday at 8.3626.

Data is few and far between Monday, keeping focus on the central bank speakers slate. Speeches from BoE's Tenreyro, ECB's Lagarde and Fed's Bostic & Kaplan will take particular focus.

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