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The huge upside surprise in the Nonfarm Payrolls data means that traders are reassessing expectations of the Fed’s monetary policy. This leaves equity markets at risk of near-term profit-taking.
We have seen a near-term correction unwinding USD strength. However, with another crucial FOMC decision this week, the outlook for the USD is at an important crossroads.
US CPI inflation fell less than expected in April. This is sending bond yields higher and selling pressure on Wall Street again.
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