The dollar has returned to consolidation mode after last week's run on the upside. Friday's March core PCE deflator release remains the biggest number of the week and will determine whether US short-dated yields need to rise any further. Indeed, many investors might find US two-year Treasury yields very attractive at 5% given the dangerous geopolitical backdrop. For today, we doubt the US April PMIs or new home sales data will have much impact on the dollar. And, at the margin, it may be the threat of large-scale Asian FX intervention that is preventing investors from adding any more dollars to already crowded long ... (full story)