There was a fierce bid for US dollars to start the month but it’s now largely reversed.
I could tie together a narrative around rates, Fed hikes and whatnot but I’m going to shrug here and put this on flows around the turn of the calendar.
I don’t know if that was European money scrambling for dollars or something else. But it ended abruptly after the European close.
Directionally, some of it makes sense with the market significantly shifting the terminal top of Fed funds down to 3.33% from +4% a couple weeks ago.
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