USD – The dollar fell from its one-year high on Wednesday as longer-dated Treasury yields dipped. However, the US’s CPI report showed prices rose solidly last month, while the minutes from the Federal Reserve’s September meeting confirm tapering will begin “soon”.
Furthermore, Oanda notes that “the market is now seeing a major pivot here as far as how inflation is showing more signs of being persistent than transitory, and that’s likely to force the Fed’s hand to deliver a rate hike well in advance of what people were anticipating.”