Contrary to widespread expectations for a USD bounce after the resolution to the debt ceiling uncertainty, the dollar is broadly on the defensive, with the DXY index falling to the lowest level since February, notes BNP Paribas. "However, in our view markets are overlooking a key positive in that although the debt ceiling was officially lifted until 7 February, the bill allows for reloading of the Treasury’s extraordinary measures. This pushes the effective debt ceiling deadline to mid-May, according to our economists’ estimates – probably too close to the November mid-term elections to lead to a repeat of a ... (full story)