Daily Market Comment – Dollar advances as traders brace for Fed decision
Posted on June 14, 2021 at 8:47 am GMTMarios Hadjikyriacos, XM Investment Research Desk
· Dollar climbs as shorts hedge ahead of Fed meeting on Wednesday
· Inflation fears subside overall – Biden infrastructure bill downsized?
· Stocks hover near record highs, oil traders bet against Iran talks
Global markets seem to have concluded that this inflation episode will indeed fade soon. Despite US inflation printing 5% in annual terms last week, Treasury yields actually traded lower and various inflation expectation measures remain under pressure. The verdict is that inflation is here, but it won’t last long.
One could argue a short squeeze is what dragged Treasury yields lower, as the bond…