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US CPI coming in lower than forecast has induced a reaction across major markets. However, there are question marks over continuation of the moves.
A cross-asset consolidation has set in this morning with little real direction on major markets. The Fed minutes were an exercise in confirmation and with volatility beginning to recede, markets look for the next catalyst, with the US growth revision later today.
With the US PPI inflation following the US CPI decisively lower, the disinflationary trend is pulling the USD lower across major forex, breaking key levels.
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