eFXdata reports that Credit Agricole CIB Research expects US inflation to temporarily overshoot over the coming months.

"Inflation-wise, US CPI looks likely to overshoot beyond 3% in Q2, while Eurozone inflation could reach 2% in November and December with furthermore core inflation approaching 1.5%. These peaks would be very temporary (a few months only), but we expect the market will overreact to these numbers. We still expect inflation fears to intensify further this year, before easing in 2022," CACIB notes.