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Dollar gets battered as USD index (USDX) slides below 104.00

There was no rebound for the US dollar yesterday. The Pound, Euro and even the Yen all gained a lot of ground versus the ailing US currency. The EUR/USD extended its break above 1.0760 and that delivered a move to above 1.0875 ahead of the US close. The GBP/USD rose to test 1.25 handle and that is quite something ahead of the UK CPI data a little later this morning. It is not often you get a 400 pip rise in just 36 hours into a set of UK inflation data that is forecast to be markedly lower. Well, such was the slide in the dollar yesterday that is exactly what happened. To be honest the dollar had been struggling to make any headway for weeks now, and slightest hint that US monetary policy is potentially at a peak now, was enough to send the US currency over the edge yesterday. Hence, the dollar index got pounded all afternoon and into the US close. The index fell to 103.98 ahead of that close and later closed around 104.08. It is not much removed from that close this morning, as it tries to recover from the drubbing it received yesterday afternoon

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