Mostly stronger than expected economic data, hawkish rhetoric by several Fed officials, some signs of progress on the perverse drama over the debt ceiling, and a solid week for bank shares helped the dollar extend its recent recovery. The greenback rose to new highs for the year against the Japanese yen and Chinese yuan. The euro took out April's low (~$1.0790) and sterling traded briefly below $1.24. The US two-year note yield takes a six-session rally into the week ahead. In this run, the yield has risen from about 3.90% to almost 4.33%. The odds of a Fed hike next month had risen from practically nothing on May 5 ... (full story)