DXY, GBP/USD, USD/CHF flows - Fed's Logan adds to 'behind curve' messaging, 50bp one way or another
Logan also hawkish on unacceptable inflation, sees need for 50bp to catch up before taking stock
Also sees a case for moving faster than previously this winter
Fed's Logan tends to be on the hawkish side anyway, but comments after 'inflation trending meaningfully above target' add to the messaging from Waller that the Fed is behind the curve and needs to hike 50bp (whether in one go or just soon).
Logan suggests it is clear the Fed needs to do at least two 25bp hikes, and it may be posible to move more rapidly this winter than it has before. Higher bonds yields are interpreted as sign Fed has work to do rather than a headwind in its own right. Logan does add though that after the 50bp, to get to modestly restrictive, it would make sense to pause to assess what further action may be needed.
All in all, this suggests there is clearly momentum from at least some on the board to either speed up with 50bp, or move consecutively with 25bp, to catch up with where they need to be, before potentially then taking stock from here.
Dollar remains bid, at both ends of the spectrum, with sharp moves against non-yielder CHF and risk counters. USD/NOK hit from both sides with the drag from oil today on top. Cable just another one amongst the pack (BoE pace of action also pushed back into the shade), and break below 1.13350 has turned focus back to 1.33