The problem with not liking the US dollar is that you have to buy something else.
The US dollar has now won back a good portion of the post-FOMC minutes declines and continues to stretch higher.
Our poll on the US dollar perhaps emphasized that there is no easy alternative. Sure the Fed might not be hiking as early, or as aggressively as believed but they will still likely hike before anyone else except the Bank of England.
At the same time, money flooded into the US via the Treasury market but the thought of buying 10-year notes at 2.27% earlier today clearly turned off the market and yields have moved up to 3.32%.
Then again, maybe it’s just a bounce.
