Fed cut expectations are out of the window [Video]
|Yesterday’s inflation update from the US didn’t go well. January data showed a hotter-than-expected report across monthly and annual readings and all categories including food, energy and housing.
As such, the Federal Reserve (Fed) rate cut expectations melted like snow under the sun after yesterday’s clear uptick in US inflation suggested that the Fed would better wait and see before doing anything else. The US yields rose, risk appetite weakened while the US dollar unexpectedly softened.
Gold, too, gained despite the rising US yields and the historically negative relationship between US yields and gold prices is no longer a thing.
Elsewhere, crude prices plunged on hope of resolution in Ukraine.
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