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Some investors might start to get dragged out of equities and into bonds by temptation of higher yields in the coming weeks if, as we expect, the Treasury sell-off has further to run. Any hint at inflation targeting and YCC in the FOMC minutes next week should be USD negative, however, and some promising EZ PMIs could let EUR/USD re-test the highs
USD: Trading off the US yield vs. Fed dynamic
Heading into next week we see the dollar driven by two key