Forex
Dollar Fails to Hold Ground After Warsh's Hawkish Rhetoric
The dollar is struggling to hold its ground after failing to maintain gains following Federal Reserve Chair Kevin Warsh's hawkish speech on Friday.
Despite the strong rhetoric, the dollar has given back roughly half of its post-Jackson Hole gains and every G10 currency gained against it on Monday.
The main culprit behind this decline is the rise in US long-end yields, which is feeding the debasement trade. This suggests that markets are still viewing higher long-end yields as a sign of potential Treasury interventionism.