The US Dollar gained some strength overnight, underpinned by the rise in US yields. USD/JPY bounced off 112.00 ahead of the Tokyo open and rallied to a high of 113.00. While the pair still looks overbought in the short-term, it remains resilient, and runs into decent buying interest on every larger dip.
EUR/USD fell back to 1.0560 in yesterday's NY session, but managed to recover from there and rose to a high of 1.0660 in Asia. However, worries about the upcoming Italy referendum will likely prevent any larger EUR gains.
GBP/USD consolidated between 1.2470 and 1.2495 overnight, with flows light. The commodity currencies declined slightly, with AUD/USD falling from 0.75 to 0.7460, and NZD/USD from 0.7160 to 0.7130.
Expect high volatility in Oil and the Canadian Dollar today, as the OPEC will meet and announce their decision. The market is rather sceptic about whether the organization will be able to reach a deal to cut output.
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