US rates markets are maintaining a bullish tack and the risk is for lower yields. However, the implications are mixed for the US dollar at this point. We note a general USD bid emerging even among larger downtrends in place for over a year against the likes of SEK and MXN. As such, we have highlighted a potential bullish trigger near 6.5790 in USD/SEK and are also allowing the corrective USD/MXN bounce to extend further. Elsewhere, USD/JPY is struggling to overcome 100.00 once again and this is likely to keep risk sentiment cautious.
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Barclays