Analysis - investors expect US dollar to break higher as Fed battles inflation

US inflation reaches 3.8%, with wages failing to keep pace, putting pressure on household budgets and voter sentiment.

Fed Chair Jerome Powell issued a final warning to stock market investors, implying a potential market downturn based on historical precedents.

Gold price fell to a two-month low due to inflation fears, suggesting market anticipation of tighter monetary policy which could negatively impact risk assets.

While the market is focused on Middle East headlines, a dangerous story of quiet deterioration and cracking in multiple areas continues beneath the surface.