Dollar continues to edge higher despite stalling US yields

While the US dollar rose sharply after Tuesday’s exceptionally strong inflation print, that was partly offset by Fed Chair Powell’s relatively dovish comments in his testimony to Congress. But overall, the greenback continues to trade on the front foot as the tone in equity and bond markets remains somewhat defensive amid an ongoing reassessment of the narrative underpinning the “reflation trade”.
Jonas Goltermann Senior Markets Economist
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