While the US dollar index completed a basing pattern a few weeks ago, the recent bearish move in US rates (through 2.07%) is further catalysing a USD bid. EUR/USD is largely range bound and the greater focus remains in currency pairs such as USD/JPY and GBP/USD where the bullish USD move has likely not run its course. For further JPY weakness, we are also monitoring EUR/JPY and important resistance areas at 127.70/128.00 this week.
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Barclays