The rosy start to the year for risk had to end sometime and yesterday it was pegged back by a sharp sell-off in European equity markets. Unnerved by a resurgent euro, the likes of the CAC40 and the EuroStoxx50 fell to new lows for the year and triggered profit taking in the euro itself. Depite this sharp set back, the evidence for a more sustained euro sell-off is lacking; while there was a solitary bearish EUR/USD signal, this was not replicated on the crosses and heralds a correction not a major trend change.
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Barclays Capita