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Are We on the Cusp of New Leg up in Risk Assets?
The consolidative/corrective phase in the capital markets appears to be drawing to a close. The June PMI readings confirm a significant improvement is underway and that many high-income economies are on track to return to positive growth in Q3. At the same time, the extent of government and central bank support is unprecedented. The dollar fell against all the major currencies last week, save the Japanese yen. All five of the best performers (NOK 2.1%, NZD 1.6%, AUD 1.0%, GBP 1.0%, and CAD 0.9%) appeared to take out downtrend lines that were in place since around June 10. What is striking about the dollar's slump is ... (full story)