USD

Markets are relatively becalmed ahead of a Federal Reserve decision that could sustain—or reverse—a long rally in the dollar. Trading ranges for risk-sensitive currencies are narrowing, equity futures are pointing to a softer open, and US government bond yields are easing from yesterday’s highs – the 10-year closed at 3.571 percent and the two-year reached its loftiest levels since 2007 at 3.962 percent. Commodity prices spiked higher last night after Russian President Vladimir Putin mobilized his country’s military reserve and threatened a nuclear response in Ukraine, saying, “Those who are trying to blackmail us with nuclear weapons should know that...

Investors and foreign exchange traders are trying to recover after getting resoundingly wrong-footed by yesterday’s US consumer price report. The dollar is slipping against many of its major rivals and equity futures are pointing to a slightly stronger open as positioning errors are unwound and liquidity levels return to normal. Markets plummeted yesterday after the Bureau of Labor Statistics said price increases were faster and more persistent than anticipated in August, crushing the “peak inflation” narrative, and spurring a violent jump in short-term interest rates. The dollar surged higher, clobbering global equity bourses and rival currencies alike as terminal rate...