Financial markets saw some action in yesterday's trading after the U.S. Labor Department reported its U.S. Consumer Price Index. The annual reading came at 7.5%, hitting new 40-year high expectations as some economists were bracing for inflation to rise to 7.3%.
US Treasury yields soared after the CPI reading as the US 10-year Treasury note rose to 2.02%, above the 2% threshold for the first time since 2019. Following the release of inflation data, the chances of a rate hike of 50 basis points in March rose to nearly 50%.
Major pairs saw a lot of volatile movement on Thursday following the release of US inflation figures as the dollar index seesawed, reaching weekly highs before moving lower against its rivals.
Wall Street edged lower, with the Dow Jones industrial index shedding over 500 points. The equities' bearish tone helped the greenback recover some ground ahead of the daily close.
Precious metals faced some technical selling and are finding little bullish traction following hotter than expected inflation data as gold prices are trading below $1825.