US: Another false dawn for dollar bulls? - SocGen

Kit Juckes, Research Analyst at Societe Generale, explains that another bond market sell-off has run out of steam, and the dollar’s latest attempt at a rally appears to have run aground as a result.

Key Quotes

“The global economy is doing well, but the acceleration is due to Europe more than the US, where the story isn’t changing much, with okay growth, not much inflation and a glacial pace of monetary tightening. If the dollar’s rally is to gain any further traction at all, it will have to come from signs that wage growth is responding to rising employment. Reading the runes of October’s Labor Report is going to be hard, however, given hurricane-related distortions.”