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Week Ahead: NFP, RBA, EUR Carry Trade, GBP To The Polls, Sell In May
Global stocks and bonds remain under pressure with investors taking profit on the so called global QE trade that has fuelled rallies in asset markets around the world in recent months. Market participants fear that the prospects for further aggressive easing are fading in view of an improving inflation outlook and despite the still weak global recovery. The correction is particularly severe in the Eurozone where the QE-fuelled rally in bonds and stocks has led to valuation concerns recently. Investors worry that the ECB may consider tapering before long, and that is pushing short rates and the EUR higher as ... (full story)