US 2-year notes sit at 0.456% after making a record low earlier in the day at 0.452%. If the Fed signals QE or not, it sure feels as though the market has the “QE trade” on in spades.
Gold makes a record every day, Aussie has been to 0.9500 and emerging markets are sucking in more money than they know what to do with.
Looks to me that the risk may be tilted in favor of the dollar on a “sell the rumor/buy the fact” move if the Fed does tip more asset buying lays ahead. If the Fed stands pat, the dollar would be a clear beneficiary…
