-
Is the Dollar Slump Just Beginning or is this the Tail End?
The key question in the foreign exchange market is if the disappointing jobs data confirms and solidifies the dollar's downtrend that has emerged over the last couple of weeks. For many, the answer seems to depend on if the downside surprise was sufficient to delay the Fed's plans to reduce its bond-buying. The Fed has not provided a timeline, but it seems that tapering this month is too soon, given the Fed's leadership comments, and was never really in the cards. We suspect that among top-of-mind issues at the Fed is to avoid a taper tantrum, though better it begins with 10-year yields around 1.30% than 1.70% where ... (full story)