3 May 2016
USD: Major sell-off across the board, Fed fund futures depressed
The US Dollar is selling across the board in European hours, as the DXY breaks free to the downside, last exchanging hands below the critical 92.00 level.
View on DXY from SocGen's Juckes
As Kit Juckes, Head of FX at Societe Generale, notes: "The dollar index has broken free from its range, crushed supports and is heading lower."
Juckes adds: "For the last six months, US real yields have been falling relative to those in the Eurozone and (even more sharply) in Japan. Those real yield moves have been undermining the dollar and as the DXY dollar index broke lower, all the way to levels last seen before the ECB cut rates in January 2015..."
Fed fund futures skeptical on further hikes near term
Based on CME Group 30-Day Fed Fund futures prices, used to express the market’s views on the likelihood of changes in U.S. monetary policy, the probability of an upcoming Fed Rate hike continues very slim, with odds for a hike in June at 13%, 30% in July and 42% in September.
View on DXY from SocGen's Juckes
As Kit Juckes, Head of FX at Societe Generale, notes: "The dollar index has broken free from its range, crushed supports and is heading lower."
Juckes adds: "For the last six months, US real yields have been falling relative to those in the Eurozone and (even more sharply) in Japan. Those real yield moves have been undermining the dollar and as the DXY dollar index broke lower, all the way to levels last seen before the ECB cut rates in January 2015..."
Fed fund futures skeptical on further hikes near term
Based on CME Group 30-Day Fed Fund futures prices, used to express the market’s views on the likelihood of changes in U.S. monetary policy, the probability of an upcoming Fed Rate hike continues very slim, with odds for a hike in June at 13%, 30% in July and 42% in September.