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FX Update: A broader next round of JPY strength?
The US dollar bounced after a strong University of Michigan sentiment report on Friday boosted US treasury yields. But the US dollar will likely continue to head lower if yields stay below recent highs and risk sentiment remains steady. Elsewhere, we have an important test up mid-week for sterling as the UK reports June CPI. And the pre-eminent focus, besides the US dollar breakdown is on the yen, where the next round of strength may be broader than last week’s rally. FX Trading focus: USD bounced after brutal run lower as US treasury yields backed up on strong preliminary University of Michigan reading for July. ... (full story)