Rising Fed cut bets are pushing the long-term yields & USD higher | MarketTalk: What’s up today? | Swissquote

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US inflation came in parallel to expectations, confirming that headline inflation in the US stagnated near 0.3% level for a third month, the yearly figure rebounded from 2.4% to 2.6% as expected, while core inflation remained stuck at 3.3%. The short-end of the US yield curve eased on expectation of further Federal Reserve (Fed) cut in December, but the long-end is pushing higher on bets that inflation won’t ease to 2% if the Fed cuts defying the inflationary Trump policies.
The US dollar pushes higher, the US dollar is now in or near the overbought territory against most majors. Big caps consolidate, small caps come under pressure, while the European indices don’t take advantage of weaker euro.
In energy, oil made a short attempt to the upside yesterday on a surprise decline in US oil inventories last week, but gains remain limited. Numerous failures to clear the $72.85pb Fibonacci resistance keeps the market in the hands of the bears, with the ambition to pish the price of a barrel to $65pb target.
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