Dollar consolidates as yields edge higher across the board

The dollar looks set to end the week broadly unchanged against most currencies, halting its slide over the past couple of weeks. Bond yields in the US rebounded this week, partly due to the Fed minutes published on Wednesday but have also risen in other developed markets amid upside data surprises and somewhat hawkish commentary from some monetary policymakers. We continue to think the dollar will be on the front foot for some months until inflationary pressures ease and the Fed pivots towards rate cuts.