The US dollar is bid across the board at the moment as yields rebound from earlier lows. US 2-year yields were at 3.92% earlier today but have ticked up to 3.96%.

The market has grown more-hesitant about pricing in rate cuts after the UMich consumer sentiment report showed a surge in inflation expectations. One-year inflation rose to 7.3% from 6.5%.

It’s notable that this was mostly before Trump backtracked on China tariffs so these numbers will assuredly come down in the final report or next month.

We could also be seeing some flows ahead of the 4 pm London fix, so keep an eye out for a USD reversal after that.

Later this year,
ForexLive.com
is evolving into
investingLive.com, a new destination for intelligent market updates and smarter
decision-making for investors and traders alike.