Market Briefing: Risk Appetite Remains Depressed, Containing Trading Ranges in Currency Markets
Markets look intent on extending yesterday’s slump, with major equity indices poised for a weaker open and the dollar remaining stable on robust demand for safe-haven assets. Currency traders, bracing for weak corporate earnings, hawkish Fed minutes, and still-firm inflation data, are avoiding taking strongly-directional positions, staying close to home where possible. The pound is weaker after the Bank of England broadened its emergency buying to include index-linked gilts. In a statement setting out the details, the Bank said “The beginning of this week has seen a further significant repricing of UK government debt, particularly index-linked gilts. Dysfunction in this...