Having broken out of well-established ranges earlier in the week, US yields are surging higher across the curve. Into next week, we suspect the pace of the move will slow given approaching stronger support but for the time being, the dollar is responding. USD/JPY is the lead market for the move but we are also watching other markets for signs this move can continue into next quarter. USD/CHF breaking above 0.9345 would encourage us to raise our dollar sights more generally. Even USD/MXN is stabilising.
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Barclays Capital