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Greenback Reverses Initial Weakness As Powell Maintains Hawkish Posture

USD
  • The initial weakness in the US Dollar following the FOMC statement has abated with most G10 pairs trading back to pre-announcement levels amid Chair Powell confirming it is 'very premature' to think about pausing rate hikes.
  • EURUSD is now back to 0.9880 after reaching a high of 0.9976. Further weakness may test the validity of last week's reversal higher and whether the channel top will act as support. The channel top now intersects at 0.9821.

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