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The problem of stagflation fears for the UK economy are now setting in, causing the GBP to tumble even though the terminal rate for GBP is now expected shy of 6% - a considerable increase from its current level.
On a holiday-shortened week for the US, the CPI inflation will be the key market driver. The US consumer will also be in focus with retail sales and Michigan Sentiment.
For months, markets have been dominated by trends of USD strength and risk-averse sentiment. These trends are decisively established once more.
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