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Risk sentiment improves on trade and US funding agreement
The dollar bulls have made a decisive breakout, the question is now whether they can hold their nerve. Amidst the backdrop of continued slowing global economic trends, the dollar has been a favoured (high yielding) safe haven currency. Traders seem to be looking past the dovish move from the Fed recently, to focus on the relatively positive US economic performance within the threatening global cyclical slowdown. The dollar strength has now driven EUR/USD below $1.1300 which has been a basis of a key floor for several months, whilst pulling Dollar/Yen above 110.00. Treasury yields have ticked mildly higher, but by no ... (full story)