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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.
Ahead of the Thanksgiving holiday, there has been another leg lower in the USD correction after weaker-than-expected US Flash PMIs and dovish FOMC minutes. This has also helped to support broad market sentiment.
The USD is strengthening once more across major forex pairs. Whilst flash PMIs and Fed chair Powell should be watched, we see the potential for this to continue in the coming sessions.
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