The macro markets look a lot different now than they did at the beginning of April, and the story has once again been US economic data to blame for volatility.
With the 3-month average jobs growth running at 244 thousand and 3-month annualized core inflation at 4.5%, policy makers will most likely be able to sit out a couple of meetings and hold rates unchanged.
Investors are coming to terms with this. But the adjustment is also complicated by the recent developments in the Middle East and central banks outside the US laying the groundwork for easing policy.
All of this has created a perfect environment for the Greenback to shine, as its benefiting from its really unique position as a high yielding, high growth, commodity backed safe haven currency. This demand for the dollar is reflected in the costs for protecting against further upside rising to a 7-month high.
Join macro analyst Boris Kovacevic for the latest breakdown of the global financial markets.
Disclaimer: Converge is Convera’s new podcast that discusses a range of financial services topics. We want to remind our listeners that the information shared on this podcast is for informational purposes only and should not be considered financial advice. Please note that the opinions expressed on Converge are solely the opinions of the host and the guests, not Convera’s.