Some may argue that the risk premium these banks are charging is too high, even accounting for the risk, but what are the chances they will suddenly see the light after this regulation is passed, and drop rates across the board?
The unexpected drop in the Conference Board's consumer confidence index to 53.1 in September, from 54.5 in August, provoked a "dollar-safety" play, but Chau believes the market is waiting for Friday's labor report to set the tone for the dollar's near-term future.