Commentary from Gareth Berry, a strategist at Macquarie in Singapore
The main points he highlighted were that the dollar will strengthen over the next few weeks due to a combination of higher US yields and some risk aversion in the market.
Berry argues that "anything that reinforces fear that US inflation is steadily rising would be good for the US dollar, bad for US bonds and bad for US equities". He also adds that, "we remain US dollar bulls".
Well, the dollar isn't off to the best start to the week but it's still a bit early to tell right now. But US equity futures are holding up well, and that's giving a relative sense of calm to markets so far today.
On the inflation front, we won't have to wait long to get a sense of how much it will impact markets as the US January CPI report is due on Wednesday.
