Dollar Retreats As Fed Pricing Shifts
Volatility is reverting lower across the financial markets, even as investors swerve between opposing viewpoints on what the Federal Reserve will do next week. The dollar is back on the defensive, Treasury yields are slipping, equity futures are setting up for a modestly-positive open, and oil prices are climbing. Odds on an outsized kickoff to the central bank’s easing cycle climbed yesterday after the Wall Street Journal’s ‘Fed whisperer’ Nick Timiraos summarised the current debate on the rate-setting committee in terms that seemed to favour a larger move. Referencing conversations with current and former officials, Timiraos said “The case for...