EUR/USD falls to the lows of the day
The US dollar is near the best levels of the day as it resolves higher on falling US equities and rising Treasury yields.
Today’s CPI report was a shocker and it puts the potential for a premature taper back on the table. Initially the dollar strengthened and then it reversed lower. Now it’s climbing again and at the best levels of the day against most counterparts. Some of that is risk aversion with the Nasdaq nearly 2% lower and S&P 500 down 50 points to 4101.
The transitory inflation debate is the main event in markets for the rest of the year. The period before now was pre-game hype. Everyone expected inflation to come out swinging but it landed an absolute haymaker in the 1st round.