HSBC on the USD, say front end rates need to be higher to matter for FX

Author: Eamonn Sheridan | Category: News

A snippet from HSBC on the US dollar, analysts there are not convinced the recent rise in US yields (not referring to Tuesday US time, obviously) are dollar supportive.

Say that G10 currencies are still more aligned to risk sentiment than to relative-rate differentials

  • excl-USD/JPY "the most recent relationship between the currency and risk appetite as measured by the S&P 500, is stronger than the relationship between the relevant 2y yield differential"
  • "For rates to matter more for FX, either the level needs to be even higher or the front-end needs to start moving more"  

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