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USD Ebbs Into NY, But EUR/USD Capped at Thursday High

FOREX
  • Dollar ebbing lower headed into NY hours, as the grind higher for US yields tops out. Price action still very muted at these levels, with EUR/USD just 7 pips higher on the day, and ~20 pips above the overnight lows. Yesterday's high at 1.0785 will be watched for any range breakout - and should go a long way to reversing the post-CPI EUR/USD downtick posted on Tuesday.
  • Volumes still lacklustre, with EUR futures posting cumulative volumes of ~17% below average for this time of day - a pattern that's pretty uniform across G10 FX so far today.
  • US PPI, UMich inflation expectations round off a price-heavy week, and any further signs of core pipeline inflation strength in today's PPI report could re-initiate USD buys if yields prove supportive.

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