The dollar is regaining ground against other currencies after its deepest daily decline since 2022. We see leveraged investors interested in reversing bearish dollar exposure ahead of the US NFP data and amid rising dovish bets on future ECB monetary policy decisions. Bunds are up significantly today, with 10-year yields down 10 basis points to 2.55%. The swap market is now fully pricing in 3 full rate cuts in the Eurozone, taking the rate to 1.75%.

Source: Bloomberg Financial LP

EURUSD is falling towards 1.1000, although it still appears to be in an uptrend until it breaks below the 1.0950 zone, where the last local highs were broken yesterday. Source: xStation
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