The financial markets were notable this week due to the publication of a stronger-than-expected CPI report for the United States. In addition, yields of 30-year treasury bonds have increased to above 4.4%. These two bullish signals are now pushing the US dollar higher, pressuring Gold, EURUSD, and other currencies to new lows. The first reaction of the markets is capital flowing to the US dollar, however, this effect probably won’t be sustainable, as traders don’t seriously consider tighter monetary policy, but rather a possible delay in interest rate decline. After trying to break above 17, the volatility index ... (full story)