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After a sharp drop on the ECB’s rate cut decision, EUR/USD has recovered to 1.342. With non-farm payrolls on the way, there is potential for further USD strength. As a result, traders could look at selling the pair into strength, particularly on moves into 1.35.
There were some violent moves in USD/JPY on the back of the GDP reading. Traders could look at buying dips in anticipation of a potential move back to the 99 region.
The Nikkei is set to underperform the region today given the sharp drop in USD/JPY. We are calling it down 1.9% and just below 14,000 with weekly fund flows data in focus. Should we see a recovery in USD/JPY heading into NFP data, the Nikkei could also be in for a recovery.
Macquarie Group (MQG)
There was a big move higher in the stock yesterday with a strong uptrend still intact. While the stock is likely to dip at the open today, traders could eye moves into $50 for fresh buying opportunities.