FX Daily: October Fed hike remains very data dependent
USD: Dollar strengthens despite soft data The dollar jumped higher again yesterday. Rising back-end yields continue to weigh on global risk sentiment, with low-liquidity, higher-beta currencies bearing most of the brunt. The yen remains the sole exception to the broader dollar strength trend. Beyond the lingering threat of FX intervention, the unwinding of JPY-funded carry ...
The US dollar strengthened despite weak economic data, with high-yield bonds putting pressure on global risk sentiment. The yen remained an exception, supported by unwinding JPY-funded carry trades. The Swiss franc and Swedish krona have gained some funding flow. US economic indicators, such as falling consumer confidence and job openings, heightened concerns about potential revisions to the August payroll print, which could be revised lower.
October FOMC pricing fell to its lowest level in around two weeks, highlighting the data dependence surrounding the hike decision. Upcoming releases, such as September ADP payrolls and August personal spending and PCE inflation, will provide further clarity.
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Also reported by 1 other outlet
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