Global growth slows and assets shift
Global foreign exchange markets were choppy and trend-less in August and early September, reacting to each headline and piece of data. It is clear that the global economy is decelerating rather than collapsing but, within this, there is some divergence. For instance, the US economy grew strongly in fourth-quarter 2009 and first-quarter 2010, but then decelerated in second-quarter 2010. The eurozone and the UK, on the other hand, saw stronger growth in second-quarter 2010. Overall, however, the
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