If we don’t see a delayed bearish correction in risk sentiment by the end of the week, we can probably expect this dovish asymmetry in markets’ reaction to data to stay. Today, there are no data releases except for MBA mortgage applications, and the Fed is in the blackout period ahead of next week’s meeting. The 30-year Treasury auction will be more interesting to watch following soft demand for 10-year notes yesterday.
The hot CPI should warrant a stronger dollar from these levels, and we think there is a good chance that the dollar will find more support in the coming days. - ING FX Strategy
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