TD Research thinks that themarket’s reaction to the July FOMC was overdoneas markets used this as an opportunity to push several majors through key technical levels. "We are not convinced this is the break that investors should be chasing. Our sense is that markets—to a large extent— have traded under the narrative of a benign inflation/Fed outlook, which has also been exacerbated by frustrations in Washington. As such,we think the market is irrationally keen to jump on any excuse to add to EUR longs. While we are strategic USD bears/EUR bulls, the reluctance for several USD-pairs to sustain key breaks is ... (full story)