The recent fluctuations in the value of the US dollar appear closely tied to changes in US interest rates. Following the FOMC meeting and the release of October jobs report, the 2Y Treasury Yield experienced a notable decline of 17 basis points, resulting in a broad decrease in the value of US dollar. This decline was particularly pronounced against various currency pairs, with the dollar approaching three standard deviations below it’s 20 day moving average. Initially perceived as a minor …
Kategori: Weekly Overview
Last week may have marked are reversal point. Despite Chair Powell’s assertion that the Fed did not adopt a policy bias favoring easing and reiterated the absence of discussions regarding rate cuts, the market appears to hold a different view. The implied yield of the December 2024 Fed funds futures contract is approximately 4.45%, indicating that the market is factoring in not only the two cuts projected by the Fed in September but also the likelihood of a third cut, …