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The negative market sentiment that re-emerged once more over the weekend has continued into the early part of the week. Indices are being dragged lower along with commodities. The USD strength has pulled EUR/USD to within a whisker of parity.
With the ECB hawks arguing for a 50bps hike at next week’s ECB meeting, the performance of the EUR remains strong on major forex.
The picture of the outlook for central banks moving into 2023 is becoming a little clearer. As markets move towards the end of a tumultuous week the USD is emerging as a winner, whilst risk appetite has soured.
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