Dollar Advances As Easing Expectations Pull Back
The dollar is trading near a two-week high this morning as traders pull back on overly-optimistic monetary easing expectations and adjust positions amid heavy quarter-end rebalancing. The Canadian dollar, British pound, euro, and Japanese yen are all holding near the lower ends of their technical trading ranges, Treasuries are holding steady, and equity markets are licking their wounds after a modest pullback from record heights late last week. Swaps traders have 40 basis points in easing priced in for the final two Federal Reserve meetings this year, down from almost 50 after a series of cautious statements from policymakers, and...