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Flash: Cyclical arguments for a strong dollar more convincing than structural – JP Morgan

FXstreet.com (London) - John Normand, for JP Morgan’s Global FX strategy teams explains that as the US labour market firms and expectations of Fed tapering build, Treasuries are under-performing almost every other bond market while the dollar outperforms almost every currency.

He went onto say at some levels the dollar appears to be benefitting from the most unusual cyclical and structural environment in 15 years as the US economy and stock market outpace most others and the country inches towards energy independence.

He added by saying the cyclical arguments for a stronger dollar are more convincing than the structural ones, since there is little evidence that either a soaring S&P or booming energy production has strengthened the US balance of payments.

GBP/JPY above 154.00 enjoys a slight bullish correction

GBP/JPY has enjoyed a significant run up overnight from a consolidation day yesterday, heading towards the broken support at 154.75-155.00 area.
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'New Deal' to solve youth unemployment in the EU

German Finance minister Wolfgang Schäuble, and his French counterpart Pierre Moscovici met in Paris on Tuesday to present a joint plan aimed at tackling youth unemployment in the Eurozone. The so-called “New Deal” is expected to include various measures such as providing apprenticeships, facilitating the hiring of young people by small businesses, as well as improving work migration in the EU.
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