Hot US Inflation Data Drives Dollar Rally as Global Rate-Cut Bets Collapse
US CPI, PPI, and import prices came in hot, forcing markets to reprice rate-cut expectations sharply lower and pushing the dollar higher. ECB Governing Council member Christodoulos Patsalides warned that 'inflation risks are worsening,' flagging a June hike, while JGB yields spiked to historic levels on BOJ tightening signals. Equity markets defied the pressure, rallying on US-China trade progress even as the global easing narrative unravels.
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