Entering a UK and US long weekend markets are relatively quiet, with the USD stronger, equities flat and the U.S. 10-year at 2.55%. Today’s focus will be positioning into the long weekend, with new home sales also important. Yesterday San Francisco Fed President Williams (non-voting dove) delivered a speech highlighting the challengesto the normalization of monetary policy. Suggesting that financial stability risk and the large amount of bank reserves are a core focus. We expect Chair Yellen to lay out an updated exit strategy in the near-term.
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Scotiabank