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The USD rally is on pause this morning as traders position with caution on US Presidents Day. Reaction to data later this week could be crucial as to whether the USD rally has run its course.
Selling pressure has taken hold on risk assets in the wake of the higher than expected US inflation. Wall Street fell into the close and longer-dated US bond yields are decisively lower. The Japanese yen is standing tall.
The continued positive trends of US bond yields and the USD correlates negatively with the outlook of precious metals.
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