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Forex Market Outlook: 19 January 2023
Dollar index extended its decline as easing US inflation data raised expectations for a less hawkish Fed going forward, with markets anticipating a smaller rate hike in February’s FOMC meeting. On the data front, retail sales slumped, recording a 1.1% decline in December amid mounting inflation and recession concerns. Meanwhile, NZD/USD pared gains on Thursday, retreating from its high of 0.6530 following announcement of New Zealand Prime Minister Jacinda Ardern’s resignation which will take effect next month. Kiwi Dollar being a risk sensitive currency benefitted from China’s reopening and tightening cycles ... (full story)