The US dollar is now lower than it was before the CPI report.
The turn started with US 10-year yields were unable to break the key 2% level and USD/JPY unable to break the five-year high. Dip buying in equities and commodities also came with the turnaround.
This is a tough one to explain but there are an abundance of people who want to bet on peak US inflation. There's also a pervasive idea that if the Fed is more-aggressive now it can be less-aggressive later; which will mean a lower terminal rate.
In any case, you have to respect the technicals here. Turns like this are a signal too powerful to ignore.
