In our latest iFlow® Weekly commentary, we focus on select FX markets that reflect an interesting co-existence of risk-seeking and risk-aversion.
We begin with the greenback, which we believe remains delicately balanced. Despite the recent hawkish Fed speak (Eric Rosengren and John Williams both suggesting yesterday that there may be a need to raise rates more than currently envisaged), a slight back-up in Treasury yields, and above-consensus GDP and personal consumption revisions for 2016Q4 (as a result of which the ICE DXY index has broken above 100 from below 99 at the beginning of this week), our iFlow charts suggest the USD’s slight recovery is tentative.
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