Dollar and Equity Retreat Mixes with Monetary Policy Headlines

Talking Points:

• The slide is global equities is drawing in more markets and leading more to call 'risk aversion'

• Despite the SPX retreat, USD is shunning its safe haven appeal and driving EURUSD, GBPUSD to resistance

• The RBNZ has already rocked the FX market, ahead we still have the SNB decision and ECB's T-LTRO

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US equities suffered their biggest daily collapse since the height of the October panic. Is this the confirmation of a market that has dove head first into trend and volume-feeding risk aversion? While we are moving closer to hitting that terminal velocity, the critical steps are still ahead of us. And, the year-end liquidity drain as well as a speculative rank that has repeatedly taken advantage of short-term bouts of uncertainty will work strongly against the systemic shift. Meanwhile, monetary policy is retaking the headlines. The RBNZ caught the market off-guard with a more hawkish tone than was expected, sending the Kiwi rallying through the morning. Will the SNB rate decision and ECB's Targeted-LTRO allotment generate the same level of activity? We discuss the market's drivers and themes in today's Trading Video.

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