ING’s Chris Turner highlights a strong, macro-driven rally in the Dollar as markets price back-to-back Federal Reserve hikes in December and January, totaling around 85bp of tightening.
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Commerzbank’s Thu Lan Nguyen revises the EUR/USD outlook as US political risk recedes and Euro area risk rises. With Trump constrained by a divided Senate, the Dollar faces fewer politically driven easing threats, while French elections and Euro area debt concerns weigh on the Euro.
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UBS economist Paul Donovan notes that US October producer price inflation is expected to show higher prices, led by Oil, with Diesel directly captured in the data unlike in consumer price indices.
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Societe Generale’s Kenneth Broux and colleagues note USD/JPY has broken out of a recent consolidation, reclaiming its 200‑day moving average and trading above 160 for a second day. The pair faces key resistance around 160.40/160.70 and 162.20, with support near 158.70.
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MUFG’s Derek Halpenny notes the US Dollar consolidating at new highs above 103 on DXY, supported by a sharp 2-year UST yield move and rising risk aversion linked to poor tech sentiment and a global Microsoft outage.
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