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Weekly preview - Unwinding of pessimism trades
The pessimism trades which have dominated so far in 2016 showed signs of faltering last week and a few key releases this week will determine whether the forces of optimism can secure a further fight-back. Fading Euro and yen rallies looks the best approach despite potentially very high volatility. Although the US employment data will, as always, be very important, the PMI readings are likely to be crucial for overall confidence and underlying direction, also setting the tone for March as a whole. Commodity prices have rallied over the second half of February with the CRB index over 5% above its February 11th lows. ... (full story)