Daniel Katzive
Daniel Katzive
aversion bit crude ease equity global helped markets moderate prices risk tone
The better tone in global equity markets as crude prices moderate a bit has helped ease risk aversion concerns, to the dollar's benefit.
continued continuing currency dollar equity interest market rate respond shift tone work
The dollar is continuing to respond to the new shift in tone from the FOMC yesterday, and that has continued to work through, not only on the currency market but also on the interest rate and equity markets.
amount continue core dollar fair harder interest market markets move rate watching yields
The FX market is watching interest rate markets and short- end yields have come off and that's because core CPI was tame. For the dollar to continue to do well, you need interest rate expectations to continue to move in its favor, and with a fair amount of tightening already priced in, that's getting harder and harder.
data downside given market opposed rate remains sensitive sign surprises
I think this is a sign that the market remains disproportionately sensitive to downside surprises in U.S. data as opposed to the upside, given how much (Fed rate hikes) is already priced in.