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A risk positive mood has taken over on Wall Street in the past 24 to 36 hours. This has helped to drive major indices higher. This is also weighing on the USD with a corrective move that has developed in the past couple of weeks back on track.
The USD sell-off has continued this morning despite the traditional consolidation elsewhere ahead of Nonfarm Payrolls. However, as volatility after the data subsides, a continued USD correction is likely.
Fed Chair Powell’s speech has been keenly anticipated since the hot Nonfarm Payrolls. Markets breathed a sigh of relief as has stuck to his previous stance. USD strength has waned, adding support to risk assets.
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