The dollar and fixed income market have been quick to shrug off the PPI data. The euro is now back to pre-PPI levels and the front end of the yield cu
The dollar and fixed income market have been quick to shrug off the PPI data. The euro is now back to pre-PPI levels and the front end of the yield curve is as well with US 2s at 4.65% from a high of 4.72%.
EURUSD 10 mins
Before the PPI data, I highlighted why I thought seasonal adjustments made for a fade trade and that’s exactly what unfolded.
I would be careful from here with Bostic and Daly still set to speak. The market is feeling sanguine about high inflation and a hawkish comment from either (particularly Daly) could be a dagger.
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