Market Briefing: Hopes for Policy Pivot Fade, Dollar Rebounds
Hopes for a dovish pivot from the Federal Reserve and other major central banks are getting snuffed out in markets, forcing a broad-based unwind in risk-sensitive asset classes. Treasury yields are climbing, equity futures are setting up for a weaker session after the biggest two-day gain in more than two years, commodity prices are down, and the dollar is back in fine form, clobbering its major rivals as it moves higher. The euro, pound, yen, and yuan are all sliding as as traders cut risk heading into this Friday’s non-farm payrolls report and next week’s inflation data. We remain convinced...