Market Briefing: Worsening Risk Appetite Pummels Global Currency Markets
With real yields storming higher, the dollar is extending its rally this morning, sending the pound, euro and yen tumbling toward multi-decade lows. Global financial conditions are tightening and traders are bailing out of risk-sensitive assets ahead of next week’s Federal Reserve meeting, where policymakers are expected to deliver 75 basis-point hike and guide terminal rate expectations firmly above the 4.25 percent mark. The British pound is plumbing levels last seen in 1985 after a weak retail sales report exacerbated fears of a deep and prolonged recession. The Office for National Statistics said receipts dropped 1.6 percent between July and...