A risk revival gathered pace yesterday as short covering continued across asset classes. Commodity currencies rallied on heavy volume and a completed Double Bottom in NZD/USD implies further marginal upside this week. USD/JPY is in the spotlight today as once again it attempts to close above its 21 day average, for the first time since Apr. Ultimately, we are looking for reason to sell risk, but for the time being we are hoping to see better levels to fade the rise.
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Barclays Capital