Mario Draghi isn't the only game in town

U.S. CPI printed a little lower than expected at 2.7% y/y (and 2.2% core).

That may well stop the push for higher market rates for the time being, but a word of caution is warranted. After all, last August/September saw quite a bit of distortion thanks to the hurricanes, so while the inflation readings look a little light it would probably be unwise to draw too many sweeping conclusions from the figures.

The combined effect of Draghi's announcement of the slowing down of the purchase program towards the end of the year AND the disappointing inflation in the US, prompted a sharp reaction in the EURUSD exchange rate. All to advantage of our short term cash management in 2 years treasuries and short USD.

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