Market Briefing: Dollar Rally Pauses as Global Policy Landscape Shifts
Equity markets are poised for a strong open and the greenback is retreating ahead of data that could reinforce the “peak inflation” narrative and influence longer-term monetary policy expectations. The trade-weighted dollar is slipping from multi-decade highs and a broad-based improvement in risk appetite is visible across most major asset classes, suggesting that traders and investors are cutting short positions in preparation for tomorrow’s August consumer inflation report. The euro is powering higher, extending its biggest rally in at least six months as interest rate differentials narrow. The spread between US and German yields narrowed to a one-month low over...