Dollar strengthened broadly on Tuesday as Fed Governor Christopher Waller’s hawkish policy warning was reinforced by stronger-than-expected US inflation data, prompting markets to price a faster pace of monetary tightening. US two-year Treasury yield surged around 12bps to 4.68%, reflecting a sharp reassessment of near-term Fed policy expectations. However, Dollar’s advance has been relatively restrained, with DXY recovering to around 102.04 but still below last Friday’s close.
The post Dollar Rebounds as Waller’s Hawkish Warning and Hot CPI Lift Fed Rate Expectations appeared first on ActionForex.
