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Greenback Makes Modest Advance Pre-CPI

FOREX
  • Markets are mixed early Wednesday as traders await the US inflation data later today as well as the day-advanced initial jobless claims numbers, shifted due to Thursday's market holiday.
  • USD/JPY has bounced off the Tuesday lows of 112.73 snapping the four session losing streak as the pair recovers back above the 113.00 handle.
  • CAD is stronger for a second session, pressing USD/CAD to its lowest levels of the week and further off the 1.2476 200-dma, which remains a key resistance. The solid rally in oil prices late Tuesday remains the key driver, with Brent futures just below the $85.50/bbl weekly high printed overnight.
  • JPY, SEK and NZD are among the weakest in G10, while CAD, USD and EUR are slightly firmer.
  • US inflation data takes focus going forward, with M/M CPI expected to ratchet higher to +0.6% from +0.4% previously, taking the Y/Y rate to 5.9% - the highest rate since 1990.

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