The buck is easing across the board after the NY Fed alerted traders that its tests of a new tri-party repo system are not indicative of any shift in policy. The Fed is just clearing the drain for the day when it decides to drain the liquidity pool.
Eurodollar interest rate futures have rallied 4.0-4.5 bp in the back contracts, which has helped undermine the greenback a bit. USD/JPY has dipped into the 90.50s, for instance. EUR/USD has firmed to 1.4940.
Looks like Barron’s plea for higher rates is going unheeded, near-term.