Last week, Fed Chair Jerome Powell surprised the markets a bit by insisting that the FOMC was not confident it had done enough to bring inflation down. This saw yields in US treasuries jumping higher and the dollar gaining strength. Most of the major pairs for the greenback have shifted towards at least neutral if not waiting for an opportunity to ease. That leaves the Fed once again as the most aggressive of the major central banks, shoring up the value of the dollar. But, the conditionality in Powell’s speech – inflation coming down – puts much more weight on the coming data. If CPI change comes in with an ... (full story)