Return of the reflation trade?
Rising equities, the second biggest rise of the year in bond yields and a falling dollar seem to suggest that it was more optimism about global growth…
Apart from the continued increase in oil prices, the market is fairly calm. The Fed meeting ends today with its traditional press release and Mr. Powell press conference. The likelihood of a really big surprise is very low, but Fed members’ forecasts should nevertheless point to earlier monetary tightening than previously expected. The USD is stable, around 1.2120 vs the euro.
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