The dollar looks set to end the week lower against most major currencies after an article today by the WSJ’s often well-informed Fed reporter, Nick Timiraos, suggesting some FOMC officials favour a (somewhat) less aggressive pace of tightening sent previously-surging interest rate expectations into reverse. In addition, apparent intervention by the Japanese authorities propped up the yen in late London and early New York trading hours. At the time of writing, that has put a lid on core long-term government bond yields and provided some support for equities and riskier currencies. The DXY index, which had been rising sharply over the past couple of days, is about 2% lower since before the WSJ article was published.
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