Optimism after the PMIs and before the Fed & corporate earnings
After a turbulent week, during which it focused on problems linked to vaccines and the catastrophic surge in the pandemic in India, the market seems…
The impact of the Fed meeting is still being felt in the markets: inflation expectations have crashed (see the Graph of the day) and bond yields have followed, the US 10y falling below 1.4% overnight. The USD continued to strengthen. The EUR/USD pair plunged below 1.19. In parallel, equities plunged as well. This is the whole reflation trade that seems to be called into question.
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