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Pendulum of Sentiment Swings Back against Imminent Recession Fears Despite Curve Inversion
High political drama in recent days included the assassination of former Japanese Prime Minister Abe and the resignation of UK Prime Minister Johnson. Yet, the capital markets in general, and the currency market in particular, were not roiled. This is because investors have their sights elsewhere. The dollar surged. It is partly a function of bad news elsewhere. Japan's easy monetary policy stance sticks out like a sore thumb, and the May data showed the economic recovery from the contraction in Q1 is faltering. Industrial output slumped by a stunning 7.2% in the month, and household spending unexpectedly fell. The ... (full story)