The combination of last week’s renewed fears that inflation might not be quite dead after all and this week’s Fed FOMC meeting means that speculation on prices will dominate the talking and trading points this week in the financial markets.
Inspired by the news, the gold market has started inching up again. The dollar, meanwhile, is slipping, as per the U.S. Dollar Index.
The anxiety is spilling over into the equity markets. The S&P 500 last week continued to wander sideways, waiting for a clearer picture of what this week will bring. The market for the benchmark 10-year Treasury Note has also become cautious now that inflation has returned as a topic of discussion.