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RBA Governor Stevens not concerned with slide in AUD

Reserve Bank governor Glenn Stevens is expecting an increase in the US interest rates "by Christmas". Addressing the Australian parliament's economics committee in Canberra, Mr Stevens said he "was not especially concerned" by the prospect. Mr Stevens said the Fed's Federal Open Market Committee has two more meetings this year and that he thought an increase in the funds rate was "probably going to happen before Christmas".
 
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Sterling higher as markets weigh on inflation data

There were no data releases from the UK this morning. Markets are still pricing yesterday CPI figures. To remind ourselves inflation beat expectations – year-on-year inflation now sits at 0.1%, ahead of predictions for a reading of 0%. Note that wages are rising and this will inevitably feed into the inflation profile in coming months. Consumers should not get used to the present conditions.
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Euro little changed in a quiet morning trade

It is a steadier morning part of the session for euro with no major data releases. With Greece bailout program being approved, traders are again focused on Eurozone inflation and ECB monetary policy. The latest drop and a weaker long-run target for oil prices mean that the autumn inflation pick-up will be moderated somewhat. However, the fall-out of negative base effects and a gradual increase in core inflation due to weak potential growth still imply a return to above 1% inflation in the euro zone around New Year.
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Sterling little changed in a quite Monday trade

There were no data releases from the UK this morning so Sterling was little changed after last week's decline below 1.55 handle. Last Thursday the Bank of England had little to say as investors were taken by surprise earlier when the bank said only one of its nine policymakers had voted for a rate rise at their August meeting. Most economists had expected two or even three members of the monetary policy committee to vote for a rise. The surprise 8-1 result prompted markets to push out their bets on a first rate increase. Read more...

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