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The U.S. dollar retreats, watch this level for a deeper pullback: BBH

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(Kitco News) The U.S. dollar index is retreating and BBH Global Currency Strategy is looking at 93.51 as a key one to breach in order to see more significant losses. “DXY traded Friday at the highest level since July 24 near 94.742 but has since fallen two straight days to the lowest level since September 23. We need to see a break of the 93.51 area to set up a deeper correction for DXY to the September 21 low near 92.749,” BBH writes. The recent rise in the U.S. dollar is just a positioning adjustment and does not change the overall trend lower, according to BBH. “The broad-based weak dollar trend should remain in place due to the now-familiar combination of an ultra-dovish Fed and softening U.S. economic data.”

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