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Core Inflation Slowdown Hits a Snag, Dollar Rises Amid Fed Cut Uncertainties

Dollar rises significantly in early US session supported by the latest consumer inflation data, which also triggers a marked in DOW futures, dropping by over -300 points. Concurrently, 10-year Treasury yield is soaring near 4.3% mark. Most critically, the inflation data revealed that core CPI remained unchanged at 3.9% in January. This stagnation in core CPI previously at 4% just three months ago and 4.3% six months back sparked debates on whether disinflationary trends are stalling. This development would likely delaying any immediate Fed rate cut. Now, the May timeline for initiating rate reductions appears increasingly doubtful.

Forex Today: Eyes on comments from central bankers, mid-tier data

Here is what you need to know on Tuesday, February 6: The US Dollar (USD) started the new week on a bullish tone, with the USD Index rising 0.5% on Monday and reaching its highest level since mid-November above 104.50.

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