US dollar rebounded briefly
The US dollar quickly snapped back ahead of the US equity open but is once again closing in on session lows.
The latest round of dollar selling is following a dip in yields. US 10-year yields are down 0.3 bps to 1.489% on the day after hitting 1.533% in the aftermath of the CPI report.
There’s an alignment in markets today that we’re near a high-water mark in inflation and that it’s all transitory. Time will tell but the aggressive selling after CPI highlights how forceful that consensus is.
In terms of FX, it hasn’t been an easy trade. USD/CAD highlights the chop today and yesterday in the moves.