US Dollar, USD, DXY Index, Crude Oil, China, FOMC, US CPI – Talking Points
- The US Dollar has strengthened on higher Treasury yields
- APAC equities followed Wall Street lower while oil held the high ground
- Inflation fears are driving markets ahead of US CPI.Will USD resume its uptrend?
The US Dollar has been underpinned by Treasury yields climbing towards new highs. The short end in particular is rocketing north, with the 1-year note above 2.3%, up from 2% at the end of last month.
Although the crude oil price has pulled back from Wednesday’s peak, it remains at elevated levels and continues to stoke inflation fears. The WTI futures contract is above US $120 bbl and the Brent contract is over US$ 122 bbl.
The lockdown in Shanghai has reignited fears that China’s growth prospects aren’t as rosy as the market would like and risk assets in general have faced a tough 24 hours.
Wall Street finished lower with the Dow Jones, S&P 500 and…
