Quarterly Outlook
Fixed Income Outlook: Bonds Hit Reset. A New Equilibrium Emerges
Althea Spinozzi
Head of Fixed Income Strategy
Chief Investment Strategist
Summary: Stretched momentum and positioning continue to make it hard for the US dollar to extend gains, but there is still a lack of urgency to be short dollars. Key risks stem from intervention from Japan, particularly as Bank of Japan meets on Friday and the usual dovish narrative could prompt USDJPY to test 155+ area. Dovish repricing scope still seen for CAD and GBP, and a correction appears to be looming for Gold.
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