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Softer USD Theme Persists on Light Volumes Pre-Fed

USD
  • Softer USD theme persisting into the London close, with most major pairs printing new daily highs just a few hours out from the Fed decision.
  • Move in currencies is extending despite relative stability across US yields and equity markets since the cash open just over an hours ago.
  • Worth noting that despite the dropping dollar, currency futures volumes are markedly below average for this time of day, pointing to low levels of activity that could be exacerbating any pre-Fed moves at this stage.
  • EUR, JPY and GBP futures volumes are ~35% below average for this time of day, with all currencies seeing much lower volumes relative to this time in the session yesterday, where the US CPI report presaged a surge in market participation.

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