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The risk recovery and USD correction have gathered pace in the days since the Fed meeting. This is impacting forex, commodities and indices. Key growth and inflation data for the Eurozone will be eyed, as will the Fed’s preferred inflation gauge.
There has been a subtle but significant shift in sentiment for the USD in recent weeks. Weakness is no longer triggering decisive buying. This could be the early signs of an end to USD outperformance.
Fed Chair Powell’s speech has been keenly anticipated since the hot Nonfarm Payrolls. Markets breathed a sigh of relief as has stuck to his previous stance. USD strength has waned, adding support to risk assets.
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