Posted 4/10/2024, 11:30:00 AM
US Inflation Soars, Triggering Hawkish Fed Shift and Rally in Dollar
- US inflation comes in higher than expected, reducing chances of Fed rate cuts in 2024 from 3 to 2.
- Markets now expect more hawkish Fed policy based on inflation data and upcoming FOMC minutes.
- US dollar rallies strongly with dollar index breaking above 104 and eyeing 105 next.
- US Treasury yields hit highest levels in months on inflation and policy outlook.
- Technical analysis shows dollar index faces resistance at 105 but support remains solid around 103.