From Marc to Market:
The US dollar has extended its gains against most currencies today. What is seen as a successful US-China summit and a swing in expectations for Fed policy are aiding the greenback. The anticipated year-end effect Fed funds rate has risen by a dozen basis points this week and the two-year Treasury yield is up 16 bp this week and is the fourth week it has risen. With the Trump-Xi meeting over, the US is seen turning its attention back to Iran, where a fragile ceasefire has frozen the conflict. Crude oil prices are at their highest in more than a week. Bond yields are sharply higher and equities lower.
The UK political drama continues to play out. It has weighed extra om UK stocks and bonds and sterling, which is among the worst performing currencies in the G10 this week. Meanwhile, the market has taken the yen to its lowest level since the apparent April 30 intervention. The market has become increasingly confident that the BOJ will hike rates next month. ...
....MUCH MORE
