US inflation expectations extend bounce off four-month low
|US inflation expectations, as measured by the 10-year breakeven inflation rate per the St. Louis Federal Reserve (FRED) data, rose for the second consecutive day to 2.38% by the end of Tuesday’s North American session, per the FRED website.
In doing so, the inflation gauge extends rebound from a four-month low flashed last week ahead of the key Federal Open Market Committee (FOMC) meeting, scheduled for Wednesday.
Given the escalating chatters over hawkish halt by the Fed during this week’s appearance, increasing inflation expectations can help the policymakers to prove right the market expectations, which in turn could propel yields and the US dollar.
In addition to the Fed meeting, US PCE Inflation data and the Q4 Advance GDP also gains major attention for the future actions of the US central bank.
Read: Inflation surge could push the Fed into more than four rate hikes this year
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.