Fed sees significant upside risks to inflation, investors see trouble. | MarketTalk: What’s up today? | Swissquote

Show notes

FOMC minutes released yesterday showed that most Federal Reserve (Fed) officials see ‘significant upside risks to inflation that may require more tightening’. The US 2-year yield remained little changed at around the 5% mark, while the 10-year flirts with the 4.30% level, approaching last October’s peak, raising questions among investors on whether levels above 4% are a good entre point in the US 10-year papers, or could it go higher?
The US dollar extends gains, as the S&P500 and Nasdaq’s losses deepen.
In Europe, the latest data released yesterday showed that growth and industrial production slowed, but slowed less than expected, while employment deteriorated less than expected – giving the European Central Bank (ECB) a good reason to continue its fight against inflation. But on a microscopic level, news were less encouraging. The EURUSD remains offered below the 100-DMA yesterday, and the bears eye 1.0790, the 200-DMA.
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