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A Traders' Playbook: Fed Ends QT, USD Rallies, and Traders Eye US Labour Markets and BoE Risk
Headlines around a US–China agreement was also a clear theme, and one that has further lowered the negative political risk premium in the USD, with the DXY now eyeing the 100 level and breaking out to its best levels since August. This has refocused market attention on relative growth, inflation dynamics, and China’s efforts to boost domestic demand. Meanwhile, the US funding markets are drawing closer scrutiny as the Fed prepares to end its QT program on 1 December. Traders express some disappointment that the Fed could have done more to help the private sector absorb the increased supply of US T-bill issuance ... (full story)