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USD on the front foot ahead of the Fed -The...>

FOREX
FOREX: USD on the front foot ahead of the Fed
-The greenback is gaining against most others in G10 ahead of the FOMC rate
decision this evening (due 1800GMT), with traders appearing to book profits
following following the decline since the beginning of the week. CNH outperforms
slightly, pressing USD/CNH to levels not seen since March 4th and allowing
USD/CNH bears to target February's 6.6740, the lowest rate since July last year.
The moves at present aren't headline driven, with little newsflow crossing
overnight.
-GBP is the softest major currency headed into the NY crossover, with GBP/USD
falling through yesterday's lows early doors. Unsurprisingly, Brexit progress
remains lacking, with latest reports suggesting PM May is to seek a short delay
to Article 50 (however, the EU are likely to install conditions on such an
extension). GBP/USD may find some support at the Monday lows of $1.3185 from
here on.
-Other than the Fed decision, UK inflation takes focus at 0930GMT. CPI is
expected to rise 0.4% m/m and 1.8% y/y.

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