The FX Files – Everything, But the Hike

FICC Strategy Reports

Into the start: The USD is ripping higher following the FOMC yesterday (thoughts on that are below). Of note, EUR/USD is probing new lows just below the 1.1182/85 area. Core rates are on the defensive for the most part, with sovereign spreads to UST generally wider at the long-end. The US 2s10s curve also flattens considerably overnight to 63bps. US 10y real yields are now at -56bps. LOTS of chop in the risk space – Asian equities didn’t digest the hawkish FOMC particularly well, while NA equity futures are rebounding a bit. Let’s get into it.

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