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USD Partially Erases Monday Advance, Argentina Trade Balance Due

LATAM
  • The USD Index sits slightly softer, partially erasing the Monday strength as the currency recouples with the US yield curve USD/CNH backtracked in early European / late Asia-Pac hours, putting the pair back below the 50-dma in a move that may raise suspicion of official intervention in the currency.
    • No specific headline trigger or newsflow to prompt the move, with USD/CNH erasing the uptick posted early Monday, narrowing the gap with the 50% retracement for the Nov 14 - Nov 21 upleg at 7.1031.
  • Eurozone consumer confidence and Richmond Fed Manufacturing Index make up the data calendar, with Fed speakers including Fed's Mester, George and Bullard ahead of tomorrow’s FOMC minutes.
  • In LatAm, Argentina will post trade balance figures for Ocotber.

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