- Analytics
- News and Tools
- Market News
- Stronger dollar, lower equities, and flatter yield curve – BBH
Stronger dollar, lower equities, and flatter yield curve – BBH
The dollar continues to build on its gains after Jackson Hole. Economists at BBH maintain their strong dollar call.
Fed officials to continue their aggressive communication efforts
“The swaps market is pricing in a terminal rate close to 4.0% and we think that process is likely to continue. It's not a coincidence that Fed officials keep bringing up Paul Volcker, as the implications are clear.”
“The real 10-year yield is trading near 0.53%, the highest since July 21. Further gains would set up a test of the June 1 high near 0.82%. Elsewhere, the 3-month to 10-year curve is trading near 35 bps, the steepest since last Wednesday and off the 21 bps low from August 10. While recession risks are palpable, this key metric does not yet signal that one is imminent.”
“As we saw after the July FOMC decision and then after the FOMC minutes, Fed officials blanketed the markets with a hawkish message. We expect a similar effort after Jackson Hole. We expect each and every Fed official to stick to Powell’s hawkish script.”
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
