The sentiment around trading desks at the end of yesterday was “the Fed isn’t going to hike” but that feeling might be fading or something else is going on.
Treasuries are starting to slump, stocks are slipping and the US dollar is rallying in an unwind of yesterday’s big moves.
I’m not sure this is any more than a dead cat bounce but if you believe the market will do whatever hurts the most people, then a flight-to-safety and dollars today would really cream the fast money trade.
Lots of disbelief right now:
