Another record close in U.S. equities yesterdays combined with the release of U.S. TIC flows, which showed large foreign buying of almost all U.S. assets, including Treasurys, corporates & agency bonds as well as equities, highlights an important driver of USD strength. On a relatively basis the growth dynamic in the U.S. is encouraging large foreign inflows and USD buying. This is likely to be an ongoingtrend in 2015. Today’s focus will be the FOMC minutes at 2pm from the October 28/29th meeting; when WTI oil was trading at $82 and the USD had already appreciated 10%. We expect the risks to the minutes are tilted towards USD strength.
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