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Risk Aversion Gains Momentum, Aussie Heading Back to Year Low Against Dollar

Risk aversion is intensifying as US stocks tumbled significantly overnight, following First Republic Bank's earnings report, which reignited concerns about the broader banking sector. The troubled regional bank's shares plummeted by nearly half. Concurrently, bonds surged higher, pushing 10-year yield below 3.4% handle. Japanese Yen and Swiss Franc surged following the shift in sentiment, trailed by Dollar.

BoE Pill: We ve had a series of transitory inflation shocks one after the other

In an interview on the "Beyond Unprecedented" podcast produced by Columbia University's law school, BoE Chief Economist Huw Pill reiterated the central bank's official forecast, stating that some factors maintaining high inflation are likely to recede in the upcoming months and that inflation could fall below the 2% target in the next few years.

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