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Major Volatility Risk For USD
The US dollar is trading 97.49 last, heading into today’s US session. The USD faces a high risk of volatility today with both November CPI and the FOMC meeting due. Inflation is forecast to have grown at 0.2% last month, down from the prior 0.4%.
Looking at the FOMC, the Fed is not expected to ease further. However, it will likely reaffirm its message that it could be forced to act again in the near future if the economy weakens further.
EUR Traders Waiting on ECB Tomorrow
EURUSD will be largely linked to USD flows today ahead of the ECB meeting tomorrow. Traders are eagerly awaiting the first meeting from new ECB president Lagarde. Industry commentators expect that Lagarde will stay close to the recent message delivered by former ECB head Mario Draghi.
In short, Lagarde is likely to reassure investors that the ECB will do all it can to achieve its inflation target, keeping the door open for further easing. EURUSD trades 1.1083 last, still above the 1.1024...
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