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Fed hawks arguing in favour of another 25bps hike is generating support for the USD. A light US calendar this week will leave a mixed outlook on major forex.
A recent move towards a stronger USD had come as yields were rebounding. However, as yields have dropped away again, the USD is slipping back lower, supporting risk appetite.
The Bank of Japan has chosen not to change its ultra-easy monetary policy stance, defying expectations, and weakening the JPY. GBP is stronger after UK CPI stayed stubbornly high.
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