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We had a volatile start of a new trading week.

The dollar moved higher across the board as the US and China appear to be moving toward lowering tariffs, suggesting progress toward a potential trade deal. As a result, stock futures are also trading to the upside. However, keep in mind that sharp moves on Monday can easily be reversed through the rest of the week, possibly even today, after US CPI came out lower than expected, which can cause some weakness on yields, and possibly FED will be ready to cut rates after-all.

So, I think that USD can still come under pressure, especially if we also consider that rise on DXY is in three legs and that a lot of gaps from this weekend are still unfilled.

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