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Description:The trade-weighted US Dollar Index hit fresh monthly highs near Sudden USD losses complicate our otherwise bullish near-term Dollar forecast, but we continue to forecast further Greenback recovery through near-term trade. Comparatively limited event risk in the days ahead has left volatility expectations lower, but flare-ups in financial market tensions could nonetheless force major moves across USD currency pairs. Earlier in the week we argued that the US Dollar set an important bottom against the Euro on fairly clear sentiment extremes. It will subsequently be critical to watch for any signs that the recent equity market tumble is the start of a larger decline.
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