The tone in market has changed completely in the last 90 minutes.
The dip buyers emerged first in equities and commodities but have also arrived in crypto and now in some beaten-down currencies.
The move hit before the latest WSJ Fed preview from Timiraos but has extended since then. The report doesn't read like a leak and highlights a Fed that will be resolute in tackling inflation. But it's also important for what it doesn't say: There's no leak about a 100 bps hike and everyone assumes there would be, similar to in June when the Fed leaked it. The implied odds of a 100 bps have fallen to 15 bps from 21 bps at the start of the day.
With that, the dollar has continued to slide. The euro, pound and commodity currencies have bene the chief beneficiaries and are now essentially square on the day -- reeling in some large losses.
The chart below is AUD/USD, which has done a nice job holding the 0.6675 area after looking like it was breaking down late last week.
