Geopolitics & Cahir Yellen translating into two-way USD performance - ING

Analysts at ING note that the US Treasury yields continue grinding lower given the mix of rising geopolitical risk (Syria and concerns about potential future US involvement in North Korea – hence KRW underperformance) and yesterday’s Fed Chair Yellen comments (ie, appropriate stance of policy being closer to neutral and giving the economy “some gas”).

Key Quotes

“The former has been benefiting USD against risk sensitive currencies, while the latter limited USD gains against EUR and JPY. With a limited data calendar today, we expect major USD crosses to remain range bound, with the focus shifting to Friday’s US retail sales and core CPI today.”