Asks about the importance of the jobs report for Fed policy in the second half of the year.
Joanna
Van Rabb
If the jobs number is along expected lines, the Fed will take it as confirmation. The jobless rate at 4.4% is key; if it picks up, the Fed will be worried.
Asks if weak retail sales and lower yields are a catalyst for dollar weakness and more market easing.
Joanna
Van Rabb
The dollar is undervalued by 4.2%, similar to the gap seen after April tariffs. This is bringing on dollar hedges.