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Forex pairs in this Article » EUR/USD (Córdoba) - "US yields edged lower through much of yesterday's sessions but 10-year bond yields have—so far—steadier around the 2.80/82% area or near the spike lows seen immediately after the December FOMC meeting, the TD Securities team commented. "This should provide the USD with a little more underpinning".

Key Quotes

"Data focus today will be on retail sales but there are some important events later this week as well—the January Empire survey and the Fed Beige book on Wednesday notably".

"We don't think the weak NFP data means anything for the Fed's taper process; we continue to look for somewhat higher US longer-term yields and a stronger USD to reflect the policy divergence between the Fed and the BoJ/BoC/ECB in the main and better growth trends in the US versus the rest of the developed world in the year ahead."

"Recall that USD seasonal patterns are generally constructive at least through late Q1 when the prospects for a deeper USD consolidation may rise. Another USD-plus flew generally under the radar yesterday; the US Treasury reported a higher than expected budget surplus for the December month of USD53.2 bn, against expectations of a USD44 bn surplus".

"The improving budget data represents a further, if modest, improvement in the US' structural imbalances".
"We still prefer to buy USD weakness. Look for EURUSD gains to stall around 1.37".
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