The dollar's inability to rally ahead of the weekend on the back of a constructive jobs report and a re-pricing of the trajectory of Fed policy may signal that a corrective phase lies ahead. The market had grown a bit skeptical of another hike after this month's anticipated Fed move during the turmoil that arose from political developments in Europe. By the end of the week, the pricing of the Fed funds futures strip was again consistent with the Fed's median forecast of two more hikes this year. The Dollar Index peaked on May 29 just above 95.00. It fell to 93.70 within 48 hours of the high. Our reading of the ... (full story)