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Two FOMC speakers with a slightly hawkish lean have supported the USD and weighed on indices. The focus for markets will turn to the views of Fed Chair Powell today.
Fed Chair Powell has opened the prospect of less aggressive monetary policy tightening. Markets are breathing a sigh of relief this morning and risk appetite is staging a near-term recovery.
There has been a settling of USD gains overnight as major forex, commodities and indices have seen a mild improvement in risk appetite. However, GBP continues to trade with elevated volatility on the Bank of England’s moves in the bond market.
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