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After not even a day of respite, risk assets are being sold off once more and the USD is a tower of strength. Geopolitical risk and rising bond yields are again key factors.
With limited surprises in the FOMC minutes, market reaction has been fairly restrained. There is little change to a recent strengthening outlook for the USD.
A falling trend in US inflation continued in December. The reductions in core and headline CPI were in line with forecasts, driving a choppy reaction on forex.
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