Some investors are betting that the Covid-19 economic recovery will bring something the return from the financial crisis never did - inflation.
In the past month, the dollar has lost 3% and gold has gained nearly 7% on the idea that inflation will grow along with the ballooning U.S. budget deficit. That trade was unwinding on Tuesday, as investors took profits out of what has become very crowded positions, and gold fell 6%.
The next reading of Inflation is Wednesday at 8:30 a.m. when July's consumer price index is reported. Inflation readings have been very tame, and the July number is expected to be much of the same.