In our preview of the ECB decision, we warned the central bank may not be as dovish as the market had been pricing in the lead up, leaving the balance of risk tilted towards a higher Euro. Indeed, this is how things have played out.
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The British pound seems to be running out of steam on Thursday, prompting GBP/USD to face some selling pressueer and slip back to the 1.3050 area, down modestly for the day.
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The Reserve Bank of Australia is likely to continue bucking the trend adopted by major central banks of the dovish policy pivot, opting to maintain the policy for the seventh consecutive meeting on Tuesday.
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