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Bloody valentine: dollar finds no love
What a dramatic day it turned out to be. US inflation data surprised to the upside while retail sales disappointed. The dollar jumped then sold off. Stock indices also fell sharply before bouncing back even more strongly. Risk is back on. But bond yields remained elevated with the benchmark 10-year climbing to 2.90% as it closes in on that critical 3% level. The market is now pricing in a 100% chance of a rate hike in March. But it looks like the dollar does not care anymore, as it continues to shrug off better than expected news. The Fed’s projected rate hikes had been mostly priced in before the inflation data ... (full story)