The dollar bottomed this week's G10FX performance as it fell 2.3% vs the Japanese yen, the franc gained 2.2%, and the kiwi rose 3.0%. The moves have dragged the dollar to its lowest level since early January, Cable FX Macro Dollar Index shows. Most of the moves were isolated to Friday when Powell delivered its remarks
However, yields were sensitive to the FOMC meeting minutes preceding Powell. The 2-year yield dipped further from 4.0%, down 15.1bps on the week. The 2s10s curve remains inverted by 11.4bps
Dollar risk reversals saw an extension of puts premiums, as the 1m tenor now favors downside by 20bps. Such dollar downside interest is not seen since the pandemic
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