JPY

The dollar is slipping and risk sensitive exchange rates are recovering this morning as risk appetite improves after yesterday’s hawkish comments from Fed officials. Mr. Bullard, notoriously hawkish, but not a voting member of the Federal Open Market Committee next year, said rates might have to climb above 5.25 percent as previous increases have “had only limited effects on observed inflation”. Neel Kashkari – once one of the most dovish Fed policymakers – walked a similar path later in the day, saying “we cannot be overly persuaded by one month’s data”, helping to push back against the wholesale loosening in...

US equity futures are falling and the dollar is climbing after weak earnings releases from the likes of Amazon and Apple provided more evidence of a slowdown in the world’s largest economy. The ten-year Treasury yield is flirting with the 4-percent threshold once again, commodities are weaker, and oil price gains are stalling out. Canada’s dollar is struggling to push through the 1.35 mark. The euro is trading back below parity against the dollar after the European Central Bank delivered a widely-expected 75 basis point hike but removed statement language that had previously suggested rates would ratchet higher at the...