No respite this summer

- By FX Markets Staff
- @FXMarkets_
- 23 Jun 2008

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For some time now we have been arguing that intensifying inflation concerns and the growing threat of corporate defaults could trigger spikes in risk aversion during the otherwise quiet summer months. The recent spikes in market volatility on the back of exacerbated inflation fears partly confirmed this view. We believe that the combination of weak economic fundamentals and more concerns about inflation expectations getting out of control could promote market volatility in the coming weeks.

Sky

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