Risk assets were given a breather yesterday after Fed Brainard opined that the “Federal Reserve should keep

GBL: Global Markets Daily

FX Research by Saktiandi Supaat

Risk Relief

Risk assets were given a breather yesterday after Fed Brainard opined that the “Federal Reserve should keep monetary policy loose”. DJI, S&P and NASDAQ rebounded >1% by close after a significant sell-off last Fri (down around 2.5% each). Long USD positions were unwound overnight with AUD and NZD now back above the mid-0.75 and 0.73 respectively. Fed funds futures still imply a probability of around 20-ish percent rate hike in Sep. That said, the probability of a rate hike by Dec has...

Saktiandi Supaat    (65) 6320 1379    saktiandi@maybank.com.sg Christopher Wong    (65) 6320 1347    wongkl@maybank.com.sg