MUFG notes that, although the dollar did make headway during October, the overall gains were limited despite big moves in US Treasuries and higher yields. According to MUFG; “The modest US dollar gain on the back of another big jump in yields indicated a softening of the yield/FX correlation that may reflect a lot of good news now being priced into the dollar.” The November FOMC policy statement was broadly in line with MUFG expectations with interest rates on hold at 5.50%. Chair Powell also pointed out that financial conditions had tightened and, following the comments, markets were slightly more confident that the ... (full story)