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The dollar extended losses as intra-day accounts keyed off a weak technical backdrop. The USD index posted a sustained move under the 200-dma on Wednesday and this fueled a break below 81.00. A light U.S. data/event calendar left the focus on risk assets. Read more
The dollar added to recent losses in Europe. USD-JPY fell to 96.10 lows and was the catalyst for a EUR-USD move to 1.3368 highs in early trade. Follow through was limited by sovereign selling, while USD-JPY also met very strong bids from trust banks, which kept the dollar within a tight range. Read more
The dollar consolidated losses in Asia, leaving EUR firmly over 1.3300, while USD-JPY remained heavy around the mid-96 region as offers at 97.00 capped. AUD-USD posted strong gains as much better than expected China trade numbers boosted the pair from 0.8970 to 0.8980. Read more
The dollar headed lower, forcing the USD index back below the 200-dma for the second session. The downturn in the dollar came even after a revival in Fed taper talk on Tuesday. The move lower was a function of persistent USD-JPY weakness through 96.50 and a heavy short covering rally in Cable over 1.5500 after the BoE Inflation Report and Carney presser went down like a lead balloon. Read more
Sterling stole the headlines as BoE Carney's first quarterly Inflation Report detailed formal policy guidance. Cable fell on a knee-jerk move from 1.5300 to 1.5206 and then experienced a brutal short squeeze that topped 1.5440. EUR-USD was supported on dips, leaving it close to 1.3300, while USD-JPY was heavy in the low 97s after it registered an early move to 96.82 lows.[EUR, USD]EUR-USD ended the European morning above 1.3300 as a very sharp Cable short covering rally and strong German industrial production data boosted it from 1.3265. Read more
The dollar was supported amid a revival in Fed taper risk as even policy doves Evans and Lockhart suggested that a reduction in bond buying was likely to happen later this year. The pick up in the dollar was modest at best though due to market positioning and isolated moves in specific currencies. Read more
The dollar headed lower into the N.Y. session as EUR and GBP made up ground on strong data. German orders were much stronger than expected, along with U.K production data. Eurozone spread narrowing was evident after Italian GDP wasn't as bad as feared and fed a EUR move on 1.3300, while Cable threatened the 1.5400 region. Read more
The dollar was mixed to lower in Europe. EUR and GBP moved ahead on positive data, which included strong German orders and a pick up in U.K. production numbers. Eurozone spreads narrowed, which was a euro positive as Italian GDP came in slightly better than expected. Read more
Movement was isolated to USD-JPY and AUD-USD in Asia. The former was influenced by equity markets moves. Early losses from the Nikkei drove USD-JPY below 98.00, but a late stock rally was the catalyst for a USD-JPY move to 98.40. AUD surged from 0.8920 to 0.8985 as the RBA cut rates by 25 bp as expected, while the accompanying statement was widely deemed to be less dovish than expected. Read more
Activity was low during the N.Y. session following limited interest in Europe. EUR reversed course after 1.3300 held again due to persistent offers from an Asian account and good outstanding option positions. The dollar also found support from the U.S. Read more
