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The outlook is turning increasingly negative for the EUR. We look at the key drivers and the outlook for EUR/USD as parity approaches and crosses such as EUR/JPY and EUR/GBP.
This week has been characterised by choppy and indecisive trading. Uncertain markets have been weighing up the implications of the lower US CPI and the pushback from FOMC speakers to a Fed pivot.
Markets are continuing to react to the news late in the US session that the Federal Reserve would be less aggressive than some had expected in its tightening of monetary policy. Indices have popped higher and USD weakened.
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