UST Rally After Soft CPI Data Could Spell Trouble for Dollar: DB
Alert: HALISTER1
Source: BFW (Bloomberg First Word)
Tickers
2539Z GR (European Central Bank)
People
Alan Ruskin (Deutsche Bank Securities Inc)
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UUID: 7947283
(Bloomberg) -- If the 10-year UST yield starts moving below 2.20% after Friday’s soft CPI data, it risks undermining the dollar, managing director of FX research at Deutsche Bank Alan Ruskin said in phone interview.
- 10Y UST yield decline would especially hurt USD/JPY
- “Each month you have some excuse for why the data is soft, but the overall impression is still that inflation pressures are remarkably contained for this point in the cycle”
- Data “will keep the dollar broadly on the back foot”; positive for risky assets over time
- Still “pretty good chance” Fed will hike rates in December; however, it will become more difficult if soft data trend continues; all eyes on Jackson Hole after report, especially ECB’s Draghi rhetoric
Alert: HALISTER1
Source: BFW (Bloomberg First Word)
Tickers
2539Z GR (European Central Bank)
People
Alan Ruskin (Deutsche Bank Securities Inc)
To de-activate this alert, click here
To modify this alert, click here
UUID: 7947283