![]() ![]() Inflation eased to 8.5% from 8.6% in January on lower energy prices. The euro slid on data that showed inflation in the euro zone was not as high as investors had feared but remains elevated. Another Labor Department report showed labor costs grew much faster than previously estimated in the fourth quarter. ![]() The number of Americans filing new claims for unemployment fell again last week, pointing to a still strong jobs market. That's an obvious reason why the dollar is outperforming," he said. "We've got two-year yields at levels we haven't seen in 15 or 16 years. "There's more and more of a concern that incoming data is revealing that the Fed might be a little bit behind the curve than maybe they expected heading into this year," said Bipan Rai, North America head of FX strategy at CIBC Capital Markets in Toronto. The yield on two-year Treasury notes, which are sensitive to interest rate expectations, shot to levels last seen in July 2007 at 4.944% as the market perceived the Fed will raise rates further to tame sticky inflation. jobs market that along with other data showing growing labor costs indicates the Federal Reserve will keep interest rates higher for longer. The dollar strengthened on Thursday after unemployment claims pointed to a strong U.S. ![]()
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