Breaking Down the Big Earnings From the Big Banks

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July 15 (Bloomberg) -- JMP Securities' Devin Ryan and Bloomberg's Alison Williams discuss big bank earnings with Trish Regan on "Street Smart." (Source: Bloomberg)

Yellen, saying the economic outlook is very uncertain, and the gdp forecasters have gotten it wrong in the past.

Why did we see the dollar rallied anyway?

I asked someone at deutsche bank, and he said he focused on one of the lines in her speech.

She said interest rates could rise sooner than expected if economic data continued to improve, if the surprises continue, meaning they have been surprised, meaning we need more continuation of that.

He said they have been wrong perhaps on the economic forecasts, but their unemployment forecasts have been a little bearish.

Unemployment improved a little faster than expected, at least on some measures.

That is, to him, one of the most telling things on a macro level.

He said it seemed markets were focused on that.

She said she was concerned about the long-term unemployed.

She said there is nothing monetary policy can really do.

What are people saying more generally about the dollar?

It has had a good few weeks, few months.

Like they do not seem to be giving up on it.

It was a favorite trade going into the year.

Strategists kind of had to readjust.

They are expecting it to get stronger by the end of the year.

Our median forecast has the dollar index getting about 4% stronger by the end of the year.

What about the pound?

I just got back from london.

I was therefore two months.

I think i saw the sterling rally about 10%. what is driving the rally?

As you were saying, the dollar is stronger against almost everything, but the pound is the outlier.

It looks like they are potentially out in front of the fed.

It looks like bank of england is there as well.

It looks like a favorite trade.

It looks like teachers traders are the most bullish since about 2007. it is hard to find.

What are some of the risks?

It folds into the same issue.

People have gotten bullish on the pound.

It's rally is not a secret.

A potential referendum that is coming up.

The polls apparently are consistently signaling that scotland stays in the u.k. --

This text has been automatically generated. It may not be 100% accurate.

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