Dollar not living up to the dovish talk
Bonds and the US dollar are moving in opposite directions. US 2-year yields are now down 11 bps to 1.75% on the day and near session lows but the dollar has bounced on a few fronts.
USD/JPY is up to 108.12 from a low of 107.90 and is trading at the best levels since the statement hit. EUR/USD has also given back nearly all its gains since the Fed.
The dollar reaction once against points to stock markets playing a bigger role than in the past. The S&P 500 is at a session high, up 12 points to 2930 and the bounce in the dollar coincides with some strength in the past few minutes.
