Inflationary pressures are alive and well, with US producer prices surprising to the upside, helping the US dollar climb for a fifth day and win top spot for currency strength on Thursday. Core producer prices remained at a 20-month high of 3.4% y/y in November, as September’s figures was revised up from 3.1% to 3.4%. Regardless, Fed fund futures continue to price in a Fed cut next week with a near 95% probability. Although the next 25bp cut is not expected to arrive until March, with a less convincing 52.1% probability. {charts} • The US yield curve was higher, with the 2-year up 4bp (basis points) and the 10-year ... (full story)