US CPI data was notably higher than expected with the headline rate at 31-year highs at 6.2%.
US and global inflation concerns intensified after the data with a sharp increase in volatility across asset classes. US bond yields strengthened after the data with the 10-year yield above 1.55%.
After initial hesitation, the dollar posted sharp gains to the highest level since July 2020. EUR/USD dipped to 15-month lows around 1.1470. Sterling edged lower with global moves dominating the UK currency and GBP/USD lows around 1.3400.
Commodity currencies lost out to the strong dollar and unease over central bank policy risks. The much weaker than expected domestic jobs data pushed the Australian dollar to 1-month lows.
Inflation fears triggered strong demand for precious metals, but gains were undermined by dollar strength.
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