Risk aversion has been dampened, equities are strong, the U.S. 10year is stable at 2.29% and the USD is soft. An improvement in sentiment leading into the week has been on the back as expected to slightly better than expected data from China, which has opened the opportunity for profit taking further. Friday’s payrolls release was slightly weaker on headline than expected but the details suggests that labour in the U.S. remains on its recovery path and keeps expectations for the Fed unchanged. Today’s Fed labour index is an important release, which will help confirm this and is also today’s only U.S. release.
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