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23 Nov 2022

Market Wire: Fed minutes tilt dovish, lifting majors against the dollar

Policymakers on the Federal Reserve’s policy-setting committee are convinced rates will need to rise more than had been expected in September, but are preparing to moderate the pace of increases in coming months as they seek to assess the impact on the economy. According to a record of the group’s early November meeting published this afternoon, many participants felt there was considerable uncertainty around how high the federal funds rate would need to climb, but “various participants” warned that with inflation remaining high against a backdrop of continued supply and demand imbalances, the ultimate level was “somewhat higher than they...

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Market Briefing: Markets go quiet as Fed minutes and turkey loom ahead

Most major currency pairs are caught in tight trading ranges as traders brace for minutes from the Federal Reserve’s last meeting and liquidity ebbs ahead of the US Thanksgiving holiday. The dollar is modestly weaker, and Treasury yields are holding steady. The euro is trading on a slightly stronger footing after sentiment data turned higher, mitigating fears of an even sharper downturn. S&P Global’s Composite Purchasing Managers’ Index climbed to 47.8 from 47.3 in October – still below the 50 threshold separating contraction from expansion, but indicative of an improvement in confidence as the bloc grapples with a historic energy...

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