May 21, 2024 13:39 GMT
Knee-Jerk Greenback Demand Fades
USD
Friday’s high in the BBDXY wasn’t breached, with the knee-jerk greenback demand from the Canadian CPI data and the latest ‘higher for longer’ Fedspeak quickly moderating.
- U.S. STIRs saw similar reaction around Fed Governor Waller’s comments, with spill over from the post-data dovish CAD rate extension potentially feeding in.
- That leaves the BBDXY and DXY little changed on the day and a little above pre-CAD data levels.
- Those indices are still below pre-CPI levels despite the unwind in Fed rate cut premium in recent sessions.
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