Since the major indices are still near the middle of their multi-month trading ranges, this is not the time to be heavily exposed on either side of the stock market.
If we should close out the week with EUR/USD below $1.2740 and sterling below $1.55, this would suggest that the likelihood of a more invigorated US dollar is increasing, perhaps as a corollary to further risk aversion if the retreat in equities gathers pace.
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