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The circumstances surrounding the ECB decision to hike rates by 25 basis points have started to weigh on the EUR strength. Outperformance looks less certain.
The USD has had a choppy start to the new year. Initial strengthening has given way to renewed corrective pressure this morning. This comes as equities and precious metals continue to run higher.
US CPI is the main focus this week, along with inflation, industrial production and retail sales for several major economies. The Bank of England decision is also key given the uncertainty surrounding the size of the hike.
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