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There has been a shift in market sentiment over the past day. A decline in US bond yields has weighed on the USD and allowed risk appetite to improve. However, key barriers to the continuation of the improvement lie ahead.
We continue to see a dominant trend in USD strength. Near-term counter-trend moves remain a chance to buy the USD. As such we see recent forex moves as an opportunity.
For months, markets have been dominated by trends of USD strength and risk-averse sentiment. These trends are decisively established once more.
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