Daily thread to exchange ideas and to share your thoughts
The dollar lost some of its post-FOMC shine last week though it may be tough to pin it back down completely unless Fed speakers fail to follow through.
We’re getting closer to Jackson Hole by the day and the market continues to expect some taper talk as we approach the key pivot in the timeline.
Month-end and quarter-end flows will be part and parcel of the equation this week, before we get to the OPEC+ meeting on Thursday and the US non-farm payrolls on Friday.
Equities continue to sit in a good spot, turning a blind eye to the Fed, while Treasury yields are still drifting slightly although 10-year yields did climb back above 1.50%.
I still like constructive longs in the loonie (against yen and franc) and oil, but I reckon dollar plays will also start to pique the interest of most traders once taper talk starts to become more “official” per se.
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