Following yesterday’s Fed announcement when expectations for rate hikes were raised from 3 to 4 in 2018, the dollar index rallied to its highest level since the 30th of May, the day after 2 ½ year highs were posted. Dollar strength weighed on commodity prices as all but 5 of the 22 commodities in the Bloomberg Commodity Index traded down on the day. The BRL actually traded a tad firmer, as the BCB continued its regimen of providing liquidity by holding a second extra auction of 40,000 FX swaps. KC activity was subdued in the outrights as prices traded to their lowest since the 18th of May. Since the gap was filled a week ago the market traded in a 245 point range. July/Sep traded between 230 and 210 under 26,805 times, 3,479 July/Dec’s traded between -585 and -565, and 6,557 U/Z traded between 355 and 350 under as positions were rolled down the board.
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