Greenback has come back the bid - BBH
|Analysts at BBH note that some profit-taking in the middle of last week pushed the dollar lower and gave rise in some quarters that the run was over but the greenback has come back the bid and is gaining against all the major currencies today and most of the emerging market currencies.
Key Quotes
“Much of the coverage attributes the gains to comments by the Philadelphia Fed President Harker. He joined the chorus of officials who have refused to rule out a March hike. Yet the market is not biting. The effective Fed funds have been averaging 66 bp. The March contract implies 69.5 bp, and the April contract implies 71.5 bp. Our work suggests this is consistent with about a one-in-four chance of a hike. Bloomberg puts the odds at 36% compared with 34% a week ago. The implied yield of the March and April contracts have risen by half of a basis point over the past week.”
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