“This flies in the face of mounting evidence that things are looking up for Germany, so the market seems to have shrugged it off and is looking through it.”
“The market is increasingly seeing a risk that the Fed pauses in its rate cycle -- not only that but also the peak in the interest cycle will be considerably lower.”
“The risk is that the deficit is rather worse than the market is looking for and if that's the case it may swing the focus back to structural dollar negatives and away from the interest rate focus.”
“We would expect the Fed to say something about Katrina and what it means for the immediate and long-term impact on activity and I think there's a lot of uncertainty about what they may say.”
