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What to watch

MARKET INSIGHT
  • In what was a rather uneventful overnight session (by recent standards), fixed income markets are largely in line with their US close yesterday.
  • EURUSD, although not seeing huge moves, has continued to drift lower and hit a low of 1.0855 overnight, the lowest level since 8 March. Relative rate expectations (vs a much more hawkish Fed) and concerns about the French election are weighing on the single currency. The market remains concerned about the prospects of a Le Pen win as her odds of an election victory seemingly increase with each opinion poll. The results of the first round of the election will be closely watched in early trading next week.
  • There is a relatively light data calendar today with Spanish industrial output and Italian retail sales the early highlights. Canadian labour market data will be the highlight of the afternoon session.

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