Why is recession noise so loud inspite of good job's indices?
FX Update: Is the USD rolling over or will July CPI offer support?
After the greenback only knee-jerked briefly to the strong side in reaction to both the very strong ISM Services survey last Wednesday and then the even stronger US jobs report on Friday, it’s hard to see why even a somewhat firmer July CPI print tomorrow will drive a more sustained move. For whatever reason, the market seems uninterested in bidding up the dollar on firm US data, even when that brings a solid adjustment higher to the front end of the US yield curve. Perhaps the relative anchoring of the longer end of the US yield curve is the key as the market’s view of how the cycle plays out has continued to ... (full story)