US Dollar Rebounds After Softer Inflation Data Tempers Rate Hike Bets
• US Dollar index recovered to 102.40 after dropping to 102.20 amid lower-than-expected December PPI data and falling US yields
• Annual PPI rose 1.8% in December, below forecasts of 1.9% and November's 0.8%
• US 2-year yield fell to lowest level since May 2023 around 4.13%
• Fed rate cut bets for March 2024 currently at 77% and 70% for May 2024
• Technicals show buyers still in control short-term, but sellers have advantage in medium and long-term timeframes