Strategy Report

The Fed Is Trapped Under Ice

09 Sep 2016

by Mathieu Savary, Chief Strategist, Developed Markets ex US & Head of Research Innovation

Wedged between an improving labor market but icy global conditions, the Fed may be on the verge of conducting a policy mistake. This would be dollar and yen bullish. Commodity and EM currencies should bear the brunt of any pain. The pound's upside is limited, but so is the downside. NZD should soon buckle. Draghi did nothing, yet the euro rebounded little.

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