At the start of the week we have seen some downside gap in the US dollar across the board, alongside lower US yields. This comes after Trump announced Scott Business as the new US Treasury Secretary, with potential policy actions that could lower yields and interest rates. While these gaps are already being filled, it seems to be a temporary reaction. So after some pause we still will expect more dollar strenght, but possibly this will be final leg up into 108 area. Because, let me remind you, we think that Dollar is in late stage of a very deep correction and that reversal can show up in December/January. In fact, we can already see some pessimism on EURUSD coming into extremes, which is evident through EUR-COT data where Large speculators are heavily short. But normally, at these levels, trends will change.
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Grega
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