FX Momentum Dies As Fed Officials Outline Dual-Sided Risks
After most Federal Reserve officials—with the notable exception of Stephen Miran—sounded a consistently-cautious and incrementally-hawkish tone in appearances during the early part of the week, the US dollar is staging a recovery against its major peers—including the euro, pound, yen, and Canadian dollar—Treasury yields are moving sideways, and North American equity futures are setting up for small gains at the open. Federal Reserve chair Jerome Powell didn’t rock any market boats in yesterday’s economic outlook speech. Speaking in Providence, Rhode Island, he noted that both ends of the central bank’s dual inflation and employment mandate are moving in the wrong...