Everyone makes mistakes, but only few use equity management.
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FX Daily: 75bp hike seen in Canada, 25bp hike expected in Poland
The dollar has remained bid since the start of the week, and was bolstered yesterday by a surprise rise (albeit marginal) in the US ISM service index. Our economist thinks yesterday’s figures endorse our 3%+ 3Q GDP forecast for the US. A solid growth story is indeed a key source of momentum for the dollar rally as markets feel increasingly confident with their pricing for more aggressive Fed tightening. A 75bp hike in September is almost fully priced in now (69bp are embedded into the swap market), but barring any big data disappointment, the room for any dovish re-pricing appears limited at this stage. The sharp ... (full story)