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A huge intraday turnaround in the US session yesterday drove an enormous risk rally. The momentum of this move continues this morning. However, built on shaky ground it may be short-lived.
Sentiment remains negative across major markets, allowing the US dollar to continue to strengthen, whilst indices are being sold off. The new week is starting where the old one left off.
The risk of contagion from the US banking sector is driving volatility through major markets. Expectations of Fed rate hikes have plummeted, hitting the USD.
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