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Rotation into safety?
USD: Softening in housing softens the dollar Two stories are catching our eye at the moment. The first is the softening in US interest rates in response to some Fed remarks last week and signs that an interest rate sensitive sector of the economy, housing, is slowing. US 30-year mortgage rates recently went above 4.80% for the first time since 2011 and the market took note of a drop in homebuilder confidence yesterday. Look out for October Housing Starts and Building Permits today where a failure to rebound from some soft September figures could see some further softening in US rates and the dollar. (Our core view, ... (full story)