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Markets Week Ahead: USD/JPY, Euro, Dow, Oil, BoC, RBNZ, Inflation, Earnings
Markets experienced some turbulence last week as freefalling bond yields concerned investors and fueled an unwind of the reflation trade. The ten-year Treasury yield, for example, plunged as much as 20-basis points to a low of 1.25%. This corresponded with a sharp pullback in risk appetite that sent the Dow Jones spiraling -1.8% lower mid-week. Crude oil prices similarly came under pressure with the commodity sinking -5.9% at its weekly low. Fear surrounding the delta covid variant – and its potential to weigh negatively on global growth prospects – stood out as one key driver of the move. Nevertheless, trader ... (full story)