Optimism ahead of the weekend has become something of a pattern recently as the market expects a eurozone response to the debt crisis. As some of the yield spreads in the zone start to narrow, hopes are clearly rising again. However, the evidence is patchy and far from conclusive; we read it as a marginal improvement not yet a sign the situation is resolving. US NFP release will provide a welcome distraction from Europes ills but we are not convinced it will trigger a major risk on rally.
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TECHNICAL RESEARCH