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Risk appetite has taken another leg lower this morning amid news out of Russia where Putin announces an escalation in the Ukraine war. Euro assets are being hit and the USD is again outperforming. This comes as the Fed meeting is also being eyed.
Markets have been cautious in the early part of the week. After a big sell-off following Fed chair Powell’s hawkish speech at Jackson Hole, indices are managing to rebound slightly. However, major forex and commodities are mixed.
After the Federal Reserve has recently turned data-dependent, this adds significant importance to US data for Fed rate hike expectations. Nonfarm Payrolls and ISM data will be key this week. We also watch for rate hikes from several other central banks.
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