USD: Softer NFP not enough to turn the dollar trend
It looks like Friday's slightly softer US jobs report has been enough to put paid to any ideas of a Fed hike this year. And Fed officials have also been keen to dampen speculation over a possible hike. And whilst the pricing of the Fed easing cycle this year has grown (45bp of cuts now expected for this year), the biggest impact of last week's FOMC/NFP double-header has been the decline in cross-market volatility. Here interest rate, equity and FX volatility are falling sharply again as the idea of divergent monetary policy trends gets scaled back. This environment may well last into next week's key release of US April CPI.
Seagull EA
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