Inflation Concerns Lift the Dollar and Market Rates

Global markets are reacting to sticky US services inflation and geopolitical tensions in the Middle East, leading to a stronger dollar and surging bond yields. Meanwhile, political pressure is mounting on UK PM Keir Starmer, and the Riksbank is under scrutiny following hawkish signals from Governor Thedeen.

Key Takeaways

• 1.The US dollar and government bond yields rose following slightly higher-than-expected US core inflation and the collapse of peace talks between the US and Iran.
• 2.Fed officials are signaling concern over persistent services inflation, with Chicago Fed Governor Goolsbee explicitly stating the US has an 'inflation problem.'
• 3.Political instability in the UK has reached a critical point, with an estimated 80% probability that Prime Minister Keir Starmer will lose his job this year.

Table of Contents

• Global key stories
• Nordic key stories
• Today's key events
• Market data

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