The PPI moves have faded in FX and bonds | Forexlive

The dollar and fixed income market have been quick to shrug off the PPI data. The euro is now back to pre-PPI levels and the front end of the yield curve is as well with US 2s at 4.65% from a high of 4.72%.

Before the PPI data, I highlighted why I thought seasonal adjustments made for a fade trade and that’s exactly what unfolded.

I would be careful from here with Bostic and Daly still set to speak. The market is feeling sanguine about high inflation and a hawkish comment from either (particularly Daly) could be a dagger.