The hike in March is fully priced in. The hike in May is over 80 priced in. There is already talk of continued hikes after that. Interest rate differentials globally are increasingly favoring the U.S. and it's positive for the dollar.
More Quotes from Michael Woolfolk:
This has had a psychological effect on the markets. For those of us left in the office, we're just watching to see just how high the 10-year will go today.Michael Woolfolk
Strong growth and tight labor-market conditions argue for preemptive tightening that could very well take the federal funds target rate above 5 later this year. This is viewed as a dollar positive.
Michael Woolfolk
Unemployment has drifted further below 5 percent, and at those levels you have to start being concerned about bidding up of wages. There's a compelling reason to hike interest rates at the next meeting.
Michael Woolfolk
We see that elevated oil prices and a continued Asian central bank intervention ensures that foreign demand for U. S. treasuries remains strong during January.
Michael Woolfolk
Interest rate differentials are supporting the U.S. dollar for the time being. Until the Fed pauses, it looks that's going to provide a support for dollar bulls.
Michael Woolfolk
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