Inflation Fear Prompted Selloff in Bonds and Stocks, Dollar Extending Recovery

Extremely higher volatility was seen in the markets overnight, with the steep decline in stocks and rally in yields. Bitcoin also had a free fall. Negative sentiments continue in Asia with major indexes trading in deep red. In the currency markets, Australia and New Zealand Dollars are under most selling pressure, followed by Yen. Dollar did extended the near term recovery slightly, but upside momentum is relatively weak. Sterling and Canadian Dollar are still the strongest for the week.