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Selling pressure has taken hold on risk assets in the wake of the higher than expected US inflation. Wall Street fell into the close and longer-dated US bond yields are decisively lower. The Japanese yen is standing tall.
UK inflation not only remaining above 10% but also increasing gives the Bank of England a headache ahead of Thursday’s rates decision. GBP is strengthening.
With Russia restricting its oil supply, oil volatility has been picking up. This is set to increase further as traders look ahead to crucial US inflation data.
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