Quotes from the news wire:
The dollar is coming off because there is a big focus on the earnings number and in the short-term it takes some pressure off rates, we have seen 10-year rates go down by 2 basis points. The market looks at this and says this is not a particularly dollar friendly number in the very short-term, but for the economy it is a great number.
The G20 communique basically says 1) the world is not as bad a place as markets think; and 2) if it gets worse we will use fiscal, monetary and structural policy aggressively to fix it, in baseball parlance, they were aiming for a single in terms of restoring confidence and they probably achieved it.
The FOMC's biggest worry is not lift off and its market and economic implications, but what happens if the economic recovery dies of old age without the Fed having done anything to tighten, right now the rates market builds in very gradual policy rate normalization, with increasing uncertainty about the date of lift off.
Both were relatively optimistic on the U.S. economy and went out of their way to stress upside benefits to U.S. economy of weaker oil prices, all of this is extremely positive for USD, given that fed funds has priced in an extremely flat policy hike path and the USD looks extremely sensitive to interest rate differentials in the current environment.
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