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US CPI inflation is key for sentiment and US dollar
The recent spike in volatility and flight to safety was driven by the fear that the fires of inflation were being stoked. Born out of a jump in US earnings growth as part of the payrolls report, bond yields have risen sharply and equity markets have sold off. The past few days has seen a modicum of calm beginning to creep back into market sentiment. However this could be the calm before the next storm as traders look ahead with trepidation at the US CPI inflation numbers today. Expectation of inflation has been rising this year but will there be hard confirmation of inflation? Consensus actually expects a mild tick ... (full story)