DXY posts new high but global risk appetite still anchored for now – ING

Research Team at ING, notes that the USD continues to go from strength to strength, though the question we need to ask ourselves now is whether the Fed story has run its course.

Key Quotes                           

“After years of significant dislocation, markets are much closer to pricing in the Fed's signalled path of future policy normalisation than they were prior to the US election; a Dec hike is all but a formality for markets, while Eurodollar futures are pricing in 42bp worth of higher US rates in 2017. We continue to think two Fed hikes will suffice for 2017 (even if inflation ticks up to 3%), meaning limited Fed-fuelled $ upside.”