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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.
Markets are looking pensive at the start of the new trading week. A strong close on Wall Street on Friday has been tempered by a concerning set of Chinese PMIs whilst there is a raft of tier-one data in the days ahead.
Equity markets are selling hard in the wake of Friday’s US CPI. The prospect of higher Fed rates and a stuttering re-opening of China post-lockdowns is driving markets lower.
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