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There has been a shift in market sentiment over the past day. A decline in US bond yields has weighed on the USD and allowed risk appetite to improve. However, key barriers to the continuation of the improvement lie ahead.
There has been enough in the recent UK economic data to argue for caution or aggression when the Bank of England decides on the size of its next rate hike at the beginning of August.
Lula has beaten Bolsonaro in a divisive and damaging election. However, the hard work is to come. Financial markets have so far reacted favourably.
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