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12 May 2023

Dollar maintains upward momentum into weekend on fading pivot expectations

Two- and ten-year Treasury yields are climbing and the dollar is outperforming its major rivals as investors (seemingly) begin to buy into the Federal Reserve’s much-repeated “higher for longer” narrative. S&P and Nasdaq futures are setting up for a modest gain at the open, and commodity prices are down, with the West Texas Intermediate benchmark knocking on the $70 threshold once again. In prepared comments released early this morning, Federal Reserve governor Michelle Bowman said the central bank might be forced to raise rates further as it struggles to slow growth and bring inflation down. Speaking to a banking conference in Germany,...

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