Dollar Steadies As Rate Cut Consensus Falters
Markets look set for a consolidative session as North American traders return to their desks after a long weekend. Equity futures are pointing to a modestly-negative open, ten-year Treasuries are yielding 4.27 percent, slightly below Friday’s close, and most major currency pairs are settling into ranges established earlier in the month. The dollar is up almost 2.5 percent on a year-to-date basis after last week’s higher-than-expected consumer and producer price releases triggered a crisis of confidence among investors who had been betting on an imminent and inexorable easing cycle from the Federal Reserve. Overnight index swaps are pointing to 90...