The rebound in the USD occurred in line with our view at the end of last week as the risks of a base have increased. US 10y yields are holding in a range broadly above 2%, and both gold and USD/JPY are maintaining their multi-month trends (lower and higher, respectively). Furthermore, momentum in other major rates, such as cable and EUR/USD, is overbought and trying to rollover. We are also patiently awaiting a break below the 2011 low in AUD/USD to signal that the next bullish leg for the USD is underway.
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Barclays