Warsh's Hawkish Rhetoric Fails to Boost Dollar

The US Dollar (USD) continues to struggle after the Federal Reserve's hawkish hold, as Chair Kevin Warsh's tough inflation rhetoric failed to convince markets.

Bond yields are higher across the board, underpinned by higher crude oil prices. The Brent Oil price is expected to remain within a $70, $100 range.

The USD dropped sharply due to two reasons: markets unwounding the residual 30% odds of a July hike and Fed Chair Kevin Warsh's failure to turn tough inflation rhetoric into a credible policy.