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Fedspeak keeps USD on the backfoot -The.......>

FOREX
FOREX: Fedspeak keeps USD on the backfoot
-The greenback is, once again, one of the poorest performers in G10 Friday, as
the newly-harmonious message of the FOMC continues to weigh. Overnight, Fed's
Clarida added to the chorus, stating that the Fed "can afford to be patient" and
that "if crosswinds are sustained, Fed policy should offset them". USD index
remains uncomfortably close to the 200-dma, a level it hasn't traded below since
early May 2018, at 94.883.
-At the other end of the table, antipodean FX and the Chinese Yuan are
outperforming. Reports overnight suggested trade talks between China and the US
had advanced, with Treasury Secretary Mnuchin eyeing plans for China's top trade
envoy Liu He to travel to the US in the coming weeks. USD/CNH edged to fresh
multi-month lows on the news, helping underpin both AUD and NZD in G10.
-EUR trade modestly weaker on poor domestic data, with Spain and Italy joining
France and Germany in posting terrible industrial production figures.
-US December CPI is the data highlight, with ECB's Visco also due to speak from
Rome.
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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