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Equity markets are turning increasingly corrective, leading to us changing our trading outlook. Another bull failure would confirm that rallies are being seen as a chance to sell.
As a massive week for major markets gets going, the USD is beginning to edge higher again. This comes after Friday’s US PPI data held up and there is further potential for a hawkish surprise at Wednesday’s FOMC. This is weighing on risk appetite too.
With banking fears re-emerging and key risk events of the Fed and the ECB approaching, markets are looking more fearful, with a shift into safe haven assets.
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