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Broad sentiment has shown signs of recovery this morning. UK Gilt yields have fallen back after verbal reassurance from the Bank of England has helped to support an ailing GBP. USD is weaker, with commodities and indices rebounding.
The expectations of tighter ECB monetary policy are driving a EUR recovery. Key resistances against major currencies are being tested ahead of the meeting.
It may be a quieter week on the economic calendar but US CPI inflation looms large. We consider the outlook for major markets in the days ahead.
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