From Credit Agricole:
US data has been comfortably exceeding expectations, prompting the rates market to consider the possibility of the next hike being delivered as early as March, and a hike by May now looking more likely than not. However, it has had little positive impact on the USD, which appears to be carrying something of a political risk premium at the moment. Since US equities are still performing very strongly, we suspect this has most to do with the administration’s explicit aversion to a strong currency rather than the various recent controversies surrounding President Trump’s cabinet.
