Stability in US equity and commodity markets is ultimately positive for risk and likely to keep the US dollar under pressure. But for now, there are some signs of USD strength. A key bullish day in USD/JPY signals further upside, while the downside breakout in GBP/USD points to lower in range. There are notable exceptions, however. In particular, the AUD has been outperforming, and we see room toward the 1.0625 highs, while USD/MXN is extending weakness toward its 2012 lows.
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Barclays Capital