As the dollar unwinds intraday overbought signals at the start of the week, crosses have drifted off the sidelines but without suggesting a consistent story. EUR/GBP rallied sharply but this move must be kept in context of the downtrend of the last 10 months. However, EUR/NOK fell and given the backdrop of a powerful downtrend, we suspect this move is sustainable. AUD/CAD breaking two-year trendline support would suggest a major shift in sentiment is occurring, supporting the unfolding yen depreciation story.
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Barclays Capital