US Treasury Secretary Janet Yellen reiterates view high us inflation transitory and said that she sees an 'isolated' shortages of goods in coming months.

Last week, Yellen said that the various issues that have colluded to push up prices likely will pass though she’s not sure how long that will take. “Supply bottlenecks have developed that have caused inflation,” she said. ''I believe that they’re transitory, but that doesn’t mean they’ll go away over the next several months.”

Meanwhile,  the carry trade currencies are up where rate hikes are being priced in from the likes of the Bank of England this year and the Federal Reserve next year. The US dollar is third to the CAD and AUD so far this week as investors seek shelter in commodity prices as a hedge against inflation. 

DXY, an index that measures the US dollar vs a basket of major rivals, has been trading through 93.50 and is at the highest level since Sep 2020.