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Greenback Consolidating Post-Fed Weakness, Focus on ECB & NFP

EMERGING MARKETS
  • The greenback is maintaining the post-Fed losses, with the USD Index holding underwater for much of the European morning. The index is around 0.8% off the Powell press conference highs, but has clawed back a small part of the losses posted overnight.
  • Focus rests on the ECB at 1315GMT/0815ET with the central bank seen raising rates by a 50bps clip today, with attention turning to the subsequent press conference for clues on the future trajectory for rates.
  • Outside of central banks, weekly US jobless claims data is also due, as well as factory orders for December. Markets will then quickly turn their attention to tomorrow’s US employment report.

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