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USD Fades Off Highs as Yield Recovery Falters Through Early Europe

FOREX
  • As noted above, the uptick in the US yield curve through the European open has faltered, helping cement the recovery off lows for both EUR/USD and GBP/USD. Moves similarly mirror the ~10 point creep higher for the e-mini S&P over the past hour or so, steadying prices into the NY crossover.
  • ECB speak so far this morning has been inconsequential and inline with Lagarde's press conference yesterday (Data, not date, dependent), leaving EUR/GBP inside the downtrend channel drawn off the late December high. 0.8521 marks the next downside level ahead of stronger support into 0.8493.
  • EUR/USD now closely pinned to one of the most sizeable option expiries rolling off at today's cut, with E1.1bln rolling off at 1.0850 today.

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