The USD and US assets have hammered all competition over the past 4-5 months, as the US has outperformed the rest of the world in terms of growth momentum. When will the market start to question whether that narrative will hold up?
EUR/USD has dropped on Turkish spill-overs, but is it time for EUR/USD to rebound? Not yet, but we expect cyclicals to turn against the USD relatively soon. However, the Fed will continue to hike, lifting the anchor of the USD curve along the way.