Euro is printing mild losses by heading into European session today. This move is backed with the US dollar rebound by the tracking the US Treasury yields amid cautious market sentiment ahead of the US Consumer Price Index (CPI) data.
Amidst the inflation woes in the market, worries emanating from China further add the risk in the market. Which helped the US dollar of late. Worries over the potential fallout from Evergrande roiled China’s property sector on Tuesday, which in turn has slammed the bonds Link of real estate companies amid the prevailing worries that the crisis could spread to other markets. The slide in bond prices came just hours after the U.S. Federal Reserve warned China’s troubled property sector could pose global risks.
Recently, St. Louis Federal Reserve (Fed) President James Bullard said in an interview that he is expecting the US central bank to hike its benchmark rate twice in 2022, after it’s finished with winding down its bond-buying program.
Elsewhere, U.S. Treasury Secretary Janet Yellen said on Tuesday that the bipartisan infrastructure package approved by Congress and President Joe Biden’s made a proposal of social and climate spending plan would increase U.S. productivity and the size of its labor force.
A Federal Reserve Bank of New York report showed on Tuesday that U.S. consumers are spending more and ramping up credit card balances, reversing a shift during the COVID-19 crisis, when they scaled back spending and substantially paid down debt. After rising by $17 billion in both the second and third quarters, credit card use appears to be returning to pre-pandemic patterns, the researchers said. However, balances were still $123 billion lower than at the end of 2019, according to the quarterly report on household debt and credit.
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