Market is not random but unpredictable
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Climbing Inflation Expectations May Underpin USD
The US Dollar may continue to gain ground against its major counterparts in the near term, as a noticeable pickup in inflation fuels bets that the Federal Reserve may tighten its monetary policy levers sooner than expected. The Fed’s preferred measure of consumer price growth – the Core Personal Consumption Expenditure (PCE) index – climbed 1.5%YoY in December, exceeding market estimates of a 1.3% print. The ISM manufacturing prices sub-index also surged unexpectedly, rising to 82.1 in January and smashing forecasts for a more conservative increase to 77. Indeed, inflationary pressures may continue to build in ... (full story)