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Dollar is consolidating some gains in Asia session today but remains overwhelmingly the strongest for the week. Yen is following closely as second best. Yet, there is no one-sided risk aversion in the markets to help Yen against Dollar. US stock indexes ended mixed overnight only, while Asian markets are trading in narrow range. Swiss
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The Australian dollar was the laggard this week It was a big week in the FX market as the Fed flipped the script and turned hawkish. That caused an unwind in reflation trades and the commodity currencies were in the crosshairs. It speaks volumes that Australian added 115K jobs compared to 30K expected and it
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Latest data released by ONS – 18 June 2021 Prior +9.2% Retail sales +24.6% vs +29.3% y/y expected Prior +42.4% Retail sales ex autos, fuel -2.1% vs +1.4% m/m expected Prior +9.0% Retail sales ex autos, fuel +21.7% vs +27.1% y/y expected Prior +37.7% The monthly figures are a little underwhelming but there are still
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Dollar surges overnight after much hawkish than expected Fed interest rate projections. The case of near term bullish reversal continues to build up and there is prospect of further rally before weekend. Markets are relatively mixed elsewhere though. Australian Dollar is lifted by strong job data while New Zealand Dollar is supported by strong GDP.
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So much for letting prices run hot The picture in the market is increasingly clear: Trades that benefit from inflation are reversing  today in a big way. Commodities down Small caps down Treasury yields down Tech stocks higher Gold down Yen up It’s exactly what you would expect to see on the reflation trade unwinding.
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Dollar’s post-FOMC strength continues to overwhelm the markets today. Though, Yen is also catching up as US futures point to a weak open. Selling in commodity Yen crosses is also helping the Japanese currency. Swiss Franc is currently the worst performing, as SNB sounded it’s fully in inertia despite better growth and inflation outlook. Kiwi
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Dollar softens quite notably in early US session as markets await FOMC rate decision. Though, Swiss Franc and Euro appear to be slightly weaker. On the other hand, Kiwi and Aussie are strengthening mildly but Canadian Dollar shrugs off stronger than expected consumer inflation data. Sterling also firms up mildly earlier today, but lacks follow
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