“I believe the case for an increase in the federal funds rate has strengthened in recent months”. This is probabl

GBL: Global Markets Daily

FX Research by Saktiandi Supaat

Yellen’s Boost

“I believe the case for an increase in the federal funds rate has strengthened in recent months”. This is probably as hawkish as Yellen can get. So, to add more strength to the hawk, Fed Fischer raised the probability of a Sep hike by commenting that “the Chair’s comments are consistent with a possible rate hike in Sep”. Markets have clearly focused on this line and readjusted their USD and rates positioning for a near-term increase. The DXY index jumped to mid-95 levels while 2y UST yields...

Saktiandi Supaat    (65) 6320 1379    saktiandi@maybank.com.sg Leslie Tang    (65) 6320 1378    leslietang@maybank.com.sg