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    USD: benefits from risk aversion as volatility picks up - Scotiabank Ross J Burland

    Analysts at Scotiabank explained that, overall, the USD is doing somewhat better, with the DXY making back much of the ground lost on the Fed policy statement/lower dot plot.Key Quotes:"Broader market volatility is picking up but the USD is benefiting from risk aversion.US short-term yields continue to slip (US 2Y bond yields have dropped nearly 25 bps since the end of May) and USD-supportive yield spreads have compressed.But the USD retains a yield significant advantage generally and, with the Fed still telling us it will tighten twice this year, we continue to expect the USD to strengthen.

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