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USD Boosted By CPI Beat
The US dollar has been a little subdued so far today following solid gains made yesterday in reaction to better than expected US inflation numbers. US CPI for July printed 1.8% on the headline reading, vs 1.7% expected. Meanwhile, the core number came in at 2.2% vs 2.1% expected. However, despite some initial buying, USD remains capped by expectations of further easing from the Fed. The market is pricing in another cut by the October meeting.
Weak German Data Caps EUR
EURUSD has been a little higher against USD so far today. However, the outlook remains bearish given the expectations of easing from the ECB projected for the September meeting. The German data released today has compounded these expectations, with German GDP contracting over Q2. This comes on the back of a raft of weak sentiment data and highlights how severe the turndown has been in the eurozone.
GBP Buoyed By Better...
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