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Funding currencies retreat on rising risk appetite

FXStreet (Mumbai) - Funding currencies failed to strengthen against the US dollar on Monday despite weak jobs report due to the risk-on sentiment in the equity markets across the globe.

Euro rose to a high of 1.1289 today, but fell back to trade around 1.1220 levels ahead of the US opening bell. The Japanese Yen and the Swiss franc have weakened as well. Moreover, the USD/JPY pair continues to trade in a symmetrical triangle formation.

Meanwhile, high yielding risk currencies like the commodity dollars- Aussie, Kiwi advanced today. However, Sterling failed to do so on account of a sharp drop in the service sector PMI.

The equity market rally across the globe is pointing to a broad based risk appetite. Copper on the Comex has also rallied more than 1%, while oil prices advanced 2%. The safe haven Gold, however, has managed to remain relatively resilient.

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