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Dollar Gains Extended, but Momentum Fades
The US dollar staged a strong pre-weekend rally on hints that the Fed will raise rates before the end of the year. There was initially follow through dollar buying in Asia before a more stable tone emerged in Europe, where London markets are closed for a bank holiday. The easing of the dollar’s upside momentum may set the stage for a bout of profit-taking later today and tomorrow. The implied odds of 42% that the Fed hikes rates in a few weeks may see a bigger push back by skeptical market participants. This week's data is likely to show that neither jobs nor auto sales sustained the July strength. The news stream ... (full story)