September 28, 2022 02:08 GMT
The greenback is seemingly drawing some support from earlier comments by White House National Economic Council chief Deese, who played down the need for a Plaza-type FX accord to counter USD strength.
- While there wasn't much hope or discussion of such a deal being in store, the market is still reacting to Deese's comments. The yen is the only G10 currency to outperform the USD, albeit by a shrinking margin.
- Gauges of greenback strength have advanced, with the BBDXY index printing new all-time highs just above 1,358. The DXY has just printed new cyclical highs at 114.56.
- Cable has gone offered as Deese said he "wasn't surprised" by market reaction to UK fiscal plans. The pair has now erased the entirety of yesterday's gains, with BBG trader sources pointing to fresh selling from leveraged accounts.