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After all the gyrations in reaction to the US CPI data, major currencies aren’t a whole lot changed though the dollar is holding on the weaker end of the spectrum against the euro and pound in recent weeks.
That said, EUR/USD is keeping below 1.2200 while GBP/USD is also holding below 1.4200 though the latter did recover well from the lows yesterday.
However, from a technical perspective, there is still no meaningful breaks in dollar pairs for the time being at least. USD/CAD continues to hover in and around 1.2100 while AUD/USD continues to be stuck close to 0.7750 amid option expiries.
As I said, dip buying in oil and loonie remains one of the more favourable plays for now.
Meanwhile, the latest nudge lower in yields may benefit equities for a while longer – more so tech stocks – but I’d still be betting on a stronger rotation play in the long-term.
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