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FX Daily: Emerging market FX misfires
The dollar continues well bid and is knocking on the door of some of the key technical levels we identified in yesterday's update. In recent client meetings, we have been making the case that a cyclical dollar bear trend has yet to really begin and will not start until the inverted US yield curve breaks sharply into a bullish steepening. That is our forecast for the third quarter. For the time being then, the dollar is staying strong across the board. USD/JPY has popped its head above the 140 level prompting comments from the Japanese Finance Minister that he is watching FX markets closely. This is typically a ... (full story)