Markets have returned to long dollar positions this week as markets looked again with some concern on the potential combination of monetary tightening at a time when the Delta-variant spread looks likely to hinder the global economic recovery. Some local stories have, however, emerged and G10 FX currencies have partly shifted away from the usual risk-off trades later this week. China-US relationships are also back in focus as Biden and China’s president Xi spoke over the phone for the first time since February. This could be one important thread for markets heading into year-end: so far, CNY has been supported on the ... (full story)