XE Market Analysis: North America – May 17, 2021

The dollar has been plying narrow ranges against peers for the most part. The DXY index still edged out its lowest level seen since last Wednesday, before the U.S. CPI release, at 90.28, before settling in a modestly higher range. The 10-year U.S. T-note yield touched a low today at 1.607%, about 10 bp down on the post-CPI peak, before lifting back above 1.630%. The inflation debate has cooled, and markets are for now buying into the transitory argument being touted by the Fed and other central banks.