Fed

Dollar vs Euro

US dollar weakness at the end of 2017 and the start of 2018 has made it clear that traders are going to have to be careful with dollar futures. On Friday, 12thJanuary 2018, the euro was trading at 1.2202 against the US dollar with an increase of 1.41% for the day (+0.0170). That the dollar is weakening seems odd as the Fed has clearly given forward guidance for three more interest rate increases in 2018. Given that, one would expect a stronger dollar especially as QT (Quantitative Tightening) has only begun.

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The Fed Does It Again

As the Fed continues with its announced policy of raising rates, it will be easier to find good buys in the secondary market as earlier issues will have lower prices in order to reflect the higher interest rates of new issues.

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