Dollar Slide Aligns to Rebound in Risk Trends but What About Rates and Recession Forecasts?

Risk appetite has extended its exceptional start to October and the fourth quarter with the S&P 500 earning its biggest two-day rally since April of 2020. Given the lack of tangible fundamental support behind this move, I remain dubious of its consistency. That said, the Dollar’s retreat from two-decade highs may offer valuable tracking.