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Talk of possible Fed move tonight keeps dollar on the defensive- EUR/USD edges towards 1.0850

Since the release of the benign US CPI data, the dollar has been well and truly on the defensive. That has seen the USD/JPY fall towards 155.75 and the EUR/USD grind its way close to the 1.0850 mark. The GBP/USD is of course higher too and US yields are now some 0.17% lower in the 2 year note. Now, it seems that the Fed may not have reached a decision on rates until after the release of that latest CPI report; at least not actually voted on it. Now some in the markets are speculating; that following this CPI data, the Fed may even move this evening. That is not a recommendation here though, more just reporting what is going on in the markets. Of course, if the Fed stays on hold, then the dollar could rebound, given that most recent speculation and dollar weakness. The majority of market participants still see no change this evening, but it seems the dollar is not yet taking any chances on that right now, is it? The EUR/USD has reached a high so far this afternoon at 1.0848. It is currently trading at 1.0844 
 

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