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Dollar weakness back on track with old trends renewing
After a brief yet volatile reprieve of recovery, the US dollar is being sold off again. It seems that markets are increasingly able to digest the news of strengthening US inflation which is driving US yields higher. However, focus seems to be elsewhere, with long term fundamental concerns over the burgeoning US twin deficits weighing on the greenback. Unless there is a significant shift in FOMC rate hike expectations, the negative trend on the dollar seems to be set. This is driving a key upside breakout on EUR/USD to multi-year highs, with Dollar/Yen at 15 month lows. It is also interesting to see the react to the ... (full story)