Yellen dealt a heavy blow to the FX divergence trade and sent USD falling across the board. We doubt that this is the end of the multi-year USD bull-run, however, and see the current levels as an opportunity to establish fresh longs. Indeed, the recovery in commodity prices and the easing of global financial conditions should allow the Fed to hike before long. We also note that the USD is starting to look quite cheap compared to the spread between the US and the average G9 2Y rates. Last but not least, the strong positive correlation between the ... READ MORE
