ECB Speakers in Focus as Energy Risks Fuel Inflation Concerns

The U.S. dollar is gaining on rising yields and geopolitical risk, while the ECB prepares for a potential rate hike cycle starting in June driven by energy-led inflation concerns.

Key Takeaways

• 1.The U.S. dollar is strengthening due to rising Treasury yields and geopolitical safe-haven flows stemming from tensions with Iran.
• 2.ECB attention is shifting toward potential second-round inflation effects as energy shocks threaten to translate into wage increases.
• 3.The market is pricing in a hawkish ECB path with a first rate hike expected in June, followed by two more by year-end.

Table of Contents

• Market Commentary

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