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More whiplash intraday for JPY traders after this morning’s rally turned tail and then some later in the session, as gold prices dumped and the longer US treasuries finally sold off a bit. US dollar strength was prominent across the board, sending the greenback to new highs against some EM and now not far from a breakout versus CAD and the EUR and elsewhere in G10 as well. Still, we need to see another leg of directional momentum higher in the big dollar to suggest something bigger is afoot here.
Elsewhere, sterling sagged badly on the day, and we’ve got headline risk coming hot and heavy ahead of the weekend. Does a long delay actually provide further pressure on GBPUSD if the fear is that an extension of uncertainty works against the UK’s favour? Breakout signal tracker
Our EURAUD short could just make the grade if risk appetite makes a comeback – next key event risk and decider for the position likely next Tuesday’s Reserve Bank of Australia decision. We are looking for long USD candidates for early next week if the USD punches through higher here.