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USD Tripped Higher as USD Index Clears YTD Highs

FOREX
  • Greenback's post-equity open rally is persisting, with the USD Index printing a new daily high and the best levels of 2024 so far. Clearance of Jan 17's 103.692 will have tripped the latest leg lower in the major pairs, narrowing the gap with the next key upside levels at December's 104.263 and the 100-dma of 104.436.
  • No headline or data trigger to point toward for the USD move here, with markets positioning for the ECB on Thursday as well as the Fed decision next week.
  • Despite the USD's solid gains off the Asia-Pac lows, the currency is not the best performer in G10, with AUD and CAD gains equalling that of the USD so far.
  • The 2y sale at 1300ET/1800GMT will be the next flashpoint for sentiment, and will be a key litmus test for demand ahead of 5y and 7y sales later in the week.

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