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Greenback Consolidating Post-Powell Advance, US Data In Focus

EMERGING MARKETS
  • As the dust settles following the hawkish appearance from Fed's Powell yesterday, the USD Index has consolidated recent gains overnight, confirming a key bullish break of the 100-dma. Markets broke and closed above this mark (today at 105.466) for the first time since June 2021 - a move which presaged a multi-year rally for the currency amid the Fed's post-pandemic tightening drive.
  • Focus Wednesday turns to the Bank of Canada rate decision, at which the Bank are seen keeping policy rates unchanged at 4.50% for the first time since their tightening drive kicked off in 2021. ADP employment, trade balance and JOLTS job openings data highlight the US docket ahead of Friday's payrolls report.

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