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Inflation is driving up rate hike bets globally, so why does the US dollar remain king?
It is now universally accepted that the pandemic-induced surge in inflation is no longer looking very transitory and central banks around the world are starting to hit the panic button. The US Federal Reserve is not only talking about rate hikes but wants to begin quantitative tightening soon. The Bank of England and Reserve Bank of New Zealand have already lifted rates at least once. Even the ultra-dovish European Central Bank is keeping its options open in terms of possibly having to speed up its normalization plans. There are some exceptions, but these aside, the global tightening race has yet to provide much ... (full story)