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The pain is piling on for the dollar to start the year as it is being sold across the major currencies board once again in trading today. The only salvation is that the yen is doing worse after the BOJ policy decision earlier but even USD/JPY has recovered strongly from 131.50 to 129.80 levels at
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Yen falls broadly after BoJ defied some speculations and kept yield cap unchanged today. The announcement also sent Nikkei sharply higher while shot 10-year JGB yield down. Nevertheless, it’s still a bit early to confirm reversals in Yen crosses. Meanwhile, commodity currencies are trading firmer today. European majors are on the weaker side. In particular,
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I don’t know if there’s a special catalyst for the latest round of US dollar selling, which isn’t large but it’s noticible. There’s the latest story out about breaking up banks but that’s more of a distant threat than something for markets to price in. More relevant are today’s weak Empire survey and worries about
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