Markets have been slow since the start of the week, ahead of highly anticipated US CPI numbers. We still see US yields slightly higher and US notes lower ahead of the data. Ideally, it's a fourth-wave setback with room for lower prices, as shown in the chart below, so our view did not change much.
Technically this can be a risk-off indication while the US dollar can either stay sideways or even see some recovery. Keep in mind that in EUR/USD, we see a wedge formation, which occurs at the end of the higher degree trend. So, the pair can see some limited upside here. But that's just a technical view; the key will be the US CPI catalyst and FOMC decision tomorrow.
