Rate cuts are widely expected across most developed economies - the varying pace of these cuts will affect currency moves globally. The world is also trying to prepare for the inauguration of President Trump on 20th Jan25 which will have impacts across the global economy and the structure of political governance in the USA.
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Now it gets interesting!
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Yesterday saw US inflation data reach far beyond expectations and the USD surged as a result – the market is convinced that the US will raise rates at least twice through 2022.
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