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Gains in stocks drag DXY to early October low of 110.055 and EUR/USD to parity – SocGen

Another impressive up-day for the S&P 500 (+1.6%) leaves the US Dollar Index (DXY) vulnerable. What’s more, the EUR/USD pair has a go to parity, economists at Société Générale report.

Higher stocks lift European currencies

“The move lower in yields must be nuanced. The bulk of the flattening since last week has taken place in the long end, courtesy of mean reversion and adjustment in positioning. Moves in the front end are modest and no significant repricing has taken place in where US rates will peak next year.”

“But at the current rate of gains in stocks, the DXY will soon test the early October low of 110.055 and EUR/USD will have a go at parity.”

“European currencies led by SEK, GBP, NOK and EUR are shining for a change as we approach month-end.”

USD/CNY set for a move to 7.4220/7.4540 – Credit Suisse

USD/CNY remains in a clear uptrend looks set for further medium-term strength. Economists at Credit Suisse expect the pair to chllagenge the 7.4220/7.
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USD/CNH: Still scope for a move to 7.4000 – UOB

USD/CNH could still attempt to reach the 7.4000 region in the next few weeks, comment UOB Group’s Markets Strategist Quek Ser Leang and Senior FX Stra
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