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Other Developments that Shouldn't be Lost in Focus on ECB
The ECB is clearly the driver of the day, spurring a quick drubbing of the euro, pressing bond yields lower and giving a fillip to equities. The lower US yields and unwind of long euro cross positions pushed the greenback below JPY120, though it has resurfaced above there. There is scope for the dollar to rise back toward JPY120.50-70. Meanwhile, despite a larger build in US crude oil stocks than expected and Obama seemingly securing Senate support for the agreement with Iran, oil prices have rebound by around 3%. This, coupled with news that Canada's July trade deficit was half the size that consensus forecast, has ... (full story)