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Forex pairs in this Article » EUR/USD, GBP/USD, USD/JPY (London) - Brown Brothers Harrimans Global Currency Strategy Team explain today´s earlier price action, noting that USD has been mixed so far.

They say the dollar is mixed against the majors, trading stronger against the euro and Australian dollar, but weaker against the yen and pound. Noting that the EUR/USD made a clean break below the $1.30 level to trade as low as $ 1.2925 before rebounding a bit. They said GBP/USD bounced back above the $1.52 level after the strong service PMI print. They mentioned that USD/JPY is back below 100 and AUD/USD is making new lows for the cycle near 0.9050. “EM currencies are mostly weaker.”

They explained that the Portuguese 10-year yields briefly traded above the 8% level for the first time since late 2012 as the political situation tenses up. The team noted that the Spanish and Italian sovereign debt yields are up 10-15 bp and the MSCI Asia Pacific index fell by 1.1%, with Euro Stoxx is down 1.2% and S&P futures are pointing to a -0.5% open. They informed that the WTI crude prices moved back above $100 for the first time since mid-2012, in part driven by the concerns that the political situation in Egypt could disrupt supply via the Suez Canal.
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