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USD Index Flirting With Key Resistance Early Wednesday

FOREX
  • EUR/USD making new lows at the European open as the USD index extends its recovery and looks to put an end to last week's short-lived downtrend. NFP looks to have been the pivot point here, with the USD Index now circling just below the 50-dma at 92.6144.
  • US equity futures are off yesterday's lows, but continue to look fragile, with 4510.75 the level to watch for the e-mini S&P. European stock futures are indicating a negative cash open, with the EuroStoxx50 futures off around 0.1%.
  • Implied vols across G10 GX are inching higher thanks to the recent spell of USD strength, with USD/CAD 1m adding 0.25 points this morning to clear 7.50 for the first time since late August.
  • Focus Wednesday turns to Italian retail sales, the Bank of Canada rate decision (preview here: https://marketnews.com/mni-boc-preview-september-2... ) and the Fed's Beige Book release.

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