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Markets Stabilise After Tuesday U-Turn

FOREX
  • The greenback has stabilised after Tuesday's decline, although prices remain well within yesterday's range so far. The USD index continues to see resistance at yesterday's high of 92.503 and the 200-dma above at 92.895.
  • Data and macro newsflow has been few and far between so far Wednesday, although EUR saw some support on the back of much better-than-expected French industrial and manufacturing production figures. EUR/USD is within range of the Tuesday highs at 1.1916.
  • GBP is the best performer so far, with EUR/GBP solidly inside the recent downtrend. 2021 lows at 0.8541 act as first support.
  • Focus turns to US CPI data, with prices expected to have risen 0.4% on the month (and +0.2% for the core). The Bank of Canada rate decision is also due, with the Bank seen keeping policy on hold at 0.25%.

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