Into the NA open markets are embracing risk with equities higher and a soft USD; however the US 10-year warns as it falls to 2.45%. Today there is no US data and no Fed speeches; leaving geopolitical risks as the core focus. Yesterday’s US inflation data suggest that broadly based pricing pressures continue to build, this is also thecase in Australia and Canada (see charts). This shift is likely to be accompaniedby a shifting central bank tone and currency reaction.
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