After Hawkish Fed Repositioning During April, Short Term Market Risks Skewed Towards Dovish Side
After a hawkish repositioning during April and in the wake of the Fed policy meeting, we think short term market risks are skewed towards the dovish side. Figures that fall in line or shy of the consensus are probably enough to extend a correction higher in core bonds, with Treasuries outperforming. This makes the dollar vulnerable for the time being as well, more so against a risk-on background. EUR/USD’s first topside reference is situated at 1.0807.