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Rising USD fuels recoupling concerns

BofA Merrill Lynch notes in a report on Monday: The positive correlation between US equities and the USD that reached a 15-year high only three months ago has started to collapse. This likely signals that investors are s…

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BofA Merrill Lynch notes in a report on Monday:

  • The positive correlation between US equities and the USD that reached a 15-year high only three months ago has started to collapse. 

  • This likely signals that investors are starting to worry that a strengthening USD could increase US recoupling risk.

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