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MARKET INSIGHT
  • With Japan closed (and hence US cash markets closed), the overnight session has seen a very limited range for both Treasuries and Bunds overnight with the USD moving a few pips higher. At the cash reopen for USTs, they have moved lower, with Bunds also dragged lower as Europe starts to get into the office.
  • The clear focus for today will be the FOMC meeting with the statement due at 19:00BST / 20:00CET and the press conference due to begin 30 minutes later. A 50bp hike is fully priced in by markets and almost unanimously expected by analysts. There will be more focus on the FOMC's openness to 75bp hikes and / or moving above "neutral" and any hint of asset sales. For the full MNI Fed Preview click here.
  • Today will also see final services and composite PMI from from across the Eurozone and the US (but not the UK as the data is a day delayed due to the holiday). These are unlikely to be hugely market moving.

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