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USD gains in recent sessions have come as yields have ticked higher. However, as yields fall over this morning, the USD is pulling back. This sensitivity will only increase as the FOMC meeting approaches.
Markets are continuing to react to the news late in the US session that the Federal Reserve would be less aggressive than some had expected in its tightening of monetary policy. Indices have popped higher and USD weakened.
Sentiment remains negative across major markets, allowing the US dollar to continue to strengthen, whilst indices are being sold off. The new week is starting where the old one left off.
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