Market Brief, North America

The dollar is advancing incrementally against its major rivals this morning after suffering extensive losses in the last two weeks on a softening in US economic data and a reversal in bets on Donald Trump’s trade plans. A disappointing payrolls report, several noisy but ultimately calming inflation prints, evidence of a slowing in consumer spending, and a less-aggressive-than-feared reciprocal tariff announcement on Thursday helped bring yields down in the last week and a half, and—despite a small advance overnight—the greenback is now down roughly three quarters of a percentage point in trade-weighted terms. Canadian headline and core inflation measures accelerated...

Input price inflation rose at faster pace than anticipated in the United States last month, but details under the hood indicated a moderation in some services categories, suggesting that the Federal Reserve’s preferred inflation indicator could slow in month-over-month terms when it is reported next week. Producer prices for final demand climbed 0.4 percent in January relative to the prior month, topping forecasts for a 0.3 percent increase, and rising 3.5 percent on a year-over-year basis, but airline fares and medical care costs declined, putting pressure on the key components that feed through into the core personal consumption expenditures index....