News & analysis

After a volatile end to last month, the focus of FX markets continues to be on developments in the fixed income space. This week, the dollar has reigned supreme yet again despite mixed messages coming from the Federal Reserve over bond yields. Chair Powell continued to strike a more distant tone, which stoked fixed income markets to price higher US yields, while Governor Brainard was more explicit with her concerns. Meanwhile, the UK economy saw another bumper fiscal package announced by Chancellor Rishi Sunak, however, the impact on the pound was limited as the upside to the growth outlook was offset by concerns over future fiscal consolidation.

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