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USD Index Sees Support From Run Higher in US 10y Yield

FOREX
  • Accompanying the run higher in US yields, softness across equity futures, the USD Index pushes to fresh session highs, narrowing the gap with the Oct13 highs of 106.787 and looking to snap three consecutive sessions of lower highs.
  • Fixed income markets and yields differentials remain the key drivers of currencies, with the 10y yield showing at the new multi-decade highs ahead of appearances from Fed's Waller, Williams, Bowman, Barkin, Harker and Cook later today - all ahead of the likely more key appearance from Fed's Powell tomorrow.
  • EUR/USD meets yesterday's lows at 1.0533 on the pull lower, but the Friday lows of 1.0496 remain the key downside level ahead.

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