So much for speculation of a June or September Fed Funds rate hike. After our exhaustive commentary on the FOMC's latest statement on 19 March 2015, we concluded that a "September rate "liftoff" was extremely unlikely".
Just so happened on Easter Friday, the monthly non-farm payrolls (NFP) report for March came out to be their worst since December 2013.
For a long while now, we have been bullish on the US dollar. Our premise was mainly based on the relative strength of the US economy, and on the Fed's guidance and propensity towards monetary tightening while most of the world's other central banks have embarked on their respective paths of loosening monetary conditions.
However, having been through the volatility in both the financial markets and on the economic front, we are on the precipice of shifting our stance to being intermediately bearish the dollar.