One Trader “Doesn’t Like What He Hears” From Fed Speakers

It's all about "policy paralysis" (as Citi puts it). The Fed, having managed to squeeze in a largely symbolic hike in December, now faces a rather unpalatable situation thanks to the stubbornly strong dollar. Hiking rates risks adding fuel to the fire and the more the dollar appreciates, the greater the chances that what to this point might be described as "good" strength (i.e. rising against lower yielding currencies) morphs into "bad" strength (i.e. rising against EM currencies), triggering

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