FAST FIVE: "When, Not If" – Trader Warns The Dollar Is Far More In Play Than It Looks
Where — and, perhaps even more importantly, why — the dollar moves will affect how these other currencies ultimately behave.
Unless you think a big chunk of fixed-income pricing is also a safe-haven trade, and doesn't really reflect a fair representation of policy expectations.
A look at the Eurodollar and Euribor strips tell a great story.
But consider where both tenors started.
By Wednesday, risk-reversals were showing “dollar downside bets are waning”.