Annual inflation rises to 5.4% in December from 5.1% in November. Core inflation rate y/y rose to 4.2% from a prior reading of 4.0%. Sterling nudged higher on the release but soon gave back its modest gains. GBP/USD touched 1.3618 before drifting back to 1.3700, around 10 cents below the 07:00 GMT release level. US dollar continues to strengthen ahead of next week’s FOMC meeting. 47.27% of traders are net-long with the ratio of traders short to long at 1.12/1.12. But traders are less net-short than yesterday and compared with last week. Recent changes in sentiment warn that the current . . .
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