USD
It looks like the Dollar may fall short of completing a full round trip from lows to highs, and in DXY terms 92.000 could be a step too far within the 92.506-91.364 range, but a reversion to bear-steepening in USTs has helped the Buck arrest a slide that picked up pace after benign CPI data on Wednesday. Moreover, most major rivals have reversed from best levels as bonds succumb to another bout of selling pressure, with high betas and cyclical currencies hit especially hard amidst the latest downturn in tech stocks on sector rotation in wake of President Biden signing off on Usd 1.9 tn fiscal stimulus. Meanwhile, the last 2 legs of this week’s Treasury issuance were notably less well received than the 3 year offering that has Fed backing via dovish guidance pending new dot plots from the upcoming FOMC. On that note, no chance for Fed voters to pass any judgement on debt market developments, even if desired, due to the blackout period, and the bar remains high for any official measures (like YCC or YCT) next week given the absence of undue concern via commentary from FOMC members pre-purdah.
It looks like the Dollar may fall short of completing a full round trip from lows to highs, and in DXY terms 92.000 could be a step too far within the 92.506-91.364 range, but a reversion to bear-steepening in USTs has helped the Buck arrest a slide that picked up pace after benign CPI data on Wednesday. Moreover, most major rivals have reversed from best levels as bonds succumb to another bout of selling pressure, with high betas and cyclical currencies hit especially hard amidst the latest downturn in tech stocks on sector rotation in wake of President Biden signing off on Usd 1.9 tn fiscal stimulus. Meanwhile, the last 2 legs of this week’s Treasury issuance were notably less well received than the 3 year offering that has Fed backing via dovish guidance pending new dot plots from the upcoming FOMC. On that note, no chance for Fed voters to pass any judgement on debt market developments, even if desired, due to the blackout period, and the bar remains high for any official measures (like YCC or YCT) next week given the absence of undue concern via commentary from FOMC members pre-purdah.