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It is all about month-end and quarter-end trading today but the key themes in the market are all still at play i.e. focus on energy prices, bond yields, and risk sentiment.
That said, perhaps only once we get past any rebalancing flows that things may appear to be clearer. But if anything else, continue to keep an eye on the dollar.
Despite some suggestion that the flows are dollar-supportive and could be faded, the technicals are pointing towards potentially further gains in the greenback.
EUR/USD is on the brink near 1.1600 with USD/JPY contesting key resistance at 112.00. Adding to that is the continued fall in cable, potentially targeting 1.3200.
Meanwhile, we also saw AUD/USD slip below short-term support at 0.7220-30 yesterday.
As such, the charts are arguably the key thing to be mindful about right now when viewing dollar pairs in general. That would be my go-to when trying to make sense of the things that will transpire in the day ahead.
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