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USD: Softer Dollar Has EUR, GBP Probing Interesting Levels

USD
  • The dollar remains on the backfoot a few hours into the European session, and while moves are relatively contained against the rest of G10 FX, EUR/USD is now approaching more interesting levels. The Monday high has now been topped, and 1.0852 is unlikely to provide any significant resistance ahead of 1.0857, the 76.4% retracement for the downleg off the June high. 
  • Any USD-negative outcome from today's CPI will turn focus to 1.0961 - the prevailing high just before Macron's snap election call that undermined the EUR and French bond markets at the beginning of June. 
  • Similarly for GBP, 1.2894 is the level to watch - marking the mid-March high. Strength through here would be the best levels of 2024.
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  • The dollar remains on the backfoot a few hours into the European session, and while moves are relatively contained against the rest of G10 FX, EUR/USD is now approaching more interesting levels. The Monday high has now been topped, and 1.0852 is unlikely to provide any significant resistance ahead of 1.0857, the 76.4% retracement for the downleg off the June high. 
  • Any USD-negative outcome from today's CPI will turn focus to 1.0961 - the prevailing high just before Macron's snap election call that undermined the EUR and French bond markets at the beginning of June. 
  • Similarly for GBP, 1.2894 is the level to watch - marking the mid-March high. Strength through here would be the best levels of 2024.