Westpac’s New York office recently expanded a previous study of US dollar behaviour around previous Federal Reserve tightening cycles, such as the one the US is expected to experience shortly, into a study looking at various asset classes, including 10 year bonds. Their conclusion? Previous Fed tightening cycles have been “innocuous”, that is, harmless, for major asset classes. The US dollar, in trade-weighted index terms, “stalls” on average, US equities...