Forex markets are consolidating today after a recent rebound for the dollar, whilst equities remain positively set as Wall Street hits another milestone. Speculation over the identity of the next Fed chair is helping to turn the outlook for the dollar more positive again, with a relatively more hawkish (certainly more than Janet Yellen) John Taylor an increasing possibility. This is helping to drive 2 year Treasury yields ever higher and the dollar stronger. The fact that the US yield curve continues to flatten though will be a concern, with the US 2s/10s spread now below 75 basis points to its lowest since November ... (full story)