Market Briefing: Risk Appetites Return Even as Odds on Fed “Pivot” Fall
Implied volatility is falling and risk-sensitive currencies are recovering after US House Speaker Nancy Pelosi’s aircraft exited Taiwanese airspace without triggering a military response from China. Commodities are firmer, equity indices are marching higher, and safe haven currencies – the dollar, yen, and Swiss franc – are back on the defensive as traders position ahead of what is expected to be a strong non-farm payrolls report on Friday. Yields shot upward yesterday, staging the fourth-biggest rally in five years as a series of Federal Reserve officials pushed back against markets’ overly-dovish interpretation of last week’s decision. San Francisco president Mary...