Dollar continuing on its rising path underpinned by continued under performance by emerging markets equties (vs its major peers), a weaker euro, softer commodities, narrowing Ger/US short term interest rate spreads and rising Italian bond yields. A notable turnaround in most SEK x:s took place yesterday indicating that we have entered profit taking mode. EURUSD broke lower and is now eyeing the 1.28/29 support zone, EURGBP double/triple top under creation keeps downside risk high, TCW, EURSEK, NOKSEK all printed bullish key day reversals and USDSEK clearly a preferred long, EURNOK waiting for NB but underlying force is higher, AUDNZD impulsive move into primary target range, USDMXN spike indicate stretch to be corrected, USDKRW taking off from consolidation range, BUNDS & NOTES in demand, S&P 500 so close to target….OIL lower for 106ish.
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SEB