💵🔺Dollar Reversed Losses Into End Of Week: Cable FX Macro

• Our own measure of the dollar traded heavy from Monday open, risk assets extended higher from the prior week. The Treasury market was closed on Monday session, when fears of an escalation of the Israel-Hamas conflict saw flows into sovereign debt. At re-open, the 10-year yield found bids and yields dropped by almost 20bps

• Most G10 peers saw weakness on the week, antipodes led losses, the kiwi dropped by 1.75% and the Aussie fell 1.41% on the week. The Canadian dollar posted relative strength as it finished the week unchanged vs the dollar, the Swiss franc traded higher 0.86%

• The dollar reversal kicked in after the September CPI data released. The surprise came in the headline, while the core measure rose in line with expectations. The so called "supercore" figure accelerated at the fastest pace in a year. Fed expectations of unchanged policy for most of next year strengthened, also a marginal rise in hawkish bets for 2023 was seen