Dollar Licks Its Wounds As Inflation Accelerates Slightly in Canada
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...