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The risk of contagion from the US banking sector is driving volatility through major markets. Expectations of Fed rate hikes have plummeted, hitting the USD.
The circumstances surrounding the ECB decision to hike rates by 25 basis points have started to weigh on the EUR strength. Outperformance looks less certain.
There is a more cautious feel to major markets in the past 24 hours. A strengthening USD is being bolstered in the wake of the FOMC minutes whilst profit-taking is threatening indices.
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