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USD, Stocks Remain Closely Tied as Greenback Fade Continues

FOREX
  • Price action across the USD continues to closely mirror equities here, as the USD Index plumbs new lows and the e-mini S&P creeps higher still - despite little movement in US yields since the European open. Few news or headline drivers so far, with denial reports that Putin is feeling out Ukraine peace talks failing to dampen the USD weakness/stock bounce.
  • Currency volumes so far today are mixed, with above-average EUR activity countered by slightly quieter GBP and JPY futures markets. USD slippage most notable against CHF so far today, keeping USD/CHF either side of the 50-dma, which has proved a strong magnet for prices across the past fortnight. 0.8607 remains the first support, and weakness through opens 0.8577 and below.
  • Despite solid direction so far Friday morning, few major pairs have tested or topped yesterday's highs - with EUR/USD needing a ~40 pip rally to test 1.0902. Although GBP/USD is just 10 pips shy of the Thursday high.
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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