On the surface, several fixed income sectors appear to have seen a correction or perhaps a reversal of a trend. However, looking through the noise shows that the recent market weakness was primarily driven by idiosyncratic events.
The recent rally in oil prices has not been accompanied in most cases by stronger oil currencies. In this week’s Bond Bulletin we delve into the main factors driving oil price and currency performance, and look at which currencies appear best positioned in the current environment.
As expected, the FOMC voted to maintain the federal funds rate at a range of 1.00% to 1.25% at the November meeting, citing “realized and expected labor market conditions and inflation” as the driving forces behind today's decision.