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It is difficult right now to talk about the foreign exchange market using the dollar as the numeraire.  The dollar was stronger against most of the major currencies last week, but not the yen or sterling.  The Dollar Index itself was little changed, rising less than 0.15%.

When everything was said and done more was said than done.  The FOMC minutes and official comments left March and June Fed fund futures contracts implying a half a basis point higher rares, which is essentially the spread between the bid and offer.   To the extent there has been a shift, it is a recognition by many, including ourselves, that a move in May has much to recommend itself.  The implied yield on the May contract rose two basis points last week.