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Euro rebounded in the US session

After initial decline euro rebounded in the US session. Earlier this morning Eurozone CPI data was released. Euro area annual inflation was 0.1% in August 2015, down from 0.2% in July. In August 2014 the rate was 0.4%. European Union annual inflation was 0.0% in August 2015, down from 0.2% in July. A year earlier the rate was 0.5%. 
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Sterling stable above 1.54 handle

There are no data releases from the UK today, so Sterling is being traded in a tighter range. received a boost from the Bank of England. According to its latest minutes, the Monetary Policy Committee said on September 10, “Although the downside risks emanating from overseas had risen, it would be premature to draw strong inferences from this month’s events for the likely path of activity in the UK”. What this means is that the MPC judged it too soon to decide if turmoil in markets sparked by China will affect Britain much. The BoE also said it expected Britain’s economy to maintain healthy growth. Read more...

Will Fed hike interest rates?

The FOMC announcement is expected to have the largest impact on prices this week. An interest rate hike will likely drive down the most USD rivals. However, there is a high degree of uncertainty going into the Fed’s two-day meeting which begins on September 16. Here are a few reasons for the (choose one) doubt, indecision, hesitation, vagueness, ambiguity, insecurity, improbability surrounding the Fed’s decision. 
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Sterling above 1.54 handle after BoE Meeting Minutes

As it was largely expected BoE left interest rates and asset purchase unchanged. The nine-member Monetary Policy Committee voted 8-1 this week to keep its benchmark interest rate at a record-low 0.5 percent, with only Ian McCafferty dissenting. In their discussion, officials said any external headwinds must be “weighed against the prospects for a continued healthy domestic expansion.”
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