CIBC FICC Strategy: FX Files – On Oil, Fed Chair, and the Hawkish Turn

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Into the start: The prompt WTI contract is down by over 1.2% following reports that the largest consumer countries are planning a coordinated response to release supply (see point 1). Gold and silver prices continue to get smoked as US 10-year real yields are extending higher. Core rates in the DM world remain under pressure with UST outperforming on a relative basis. That weakness is extending to a international equities to a degree. My off-the-cuff take – this is less about Powell, and more of a delayed reaction to Waller/Clarida from Friday.

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