Editor's Note: Below is a brief excerpt from today's Early Look written by Hedgeye CEO Keith McCullough. Click here to learn more about the Early Look.
Reflation can be #refreshing, for both FX and Rates, indeed:
- Oil (WTI) rallied another +2.0% last week back to Bullish TREND @Hedgeye
- US Dollar Index was up +1.0% last week, taking it higher for the 3rd week in a row
- UST 10yr Yield ramped another +8 basis points last week to +2.33% = Bullish TREND @Hedgeye too
Another measure of Reflation’s Reflation is the US 5-year 5-year-forward Break-even Rate bouncing back to +1.95%. Given the move in Oil, that’s pretty close to where headline US inflation (CPI) should be reported for the month of September.
