US inflation expectations rebound from multi-day low to 2.56%
|US inflation expectations, as per the 10-year breakeven inflation rate per the St. Louis Federal Reserve (FRED) data, recovered from the four-month low by the end of Friday’s North American session.
That said, the inflation gauge’s latest print is 2.56%, following the previous three-day downtrend that poked the lowest levels since February at around 2.50%.
The corrective pullback in inflation expectations probes the market sentiment, which previously portrayed cautious optimism, amid fears of higher interest rates. The fears of central bankers’ aggression also took clues from Reuters’ news suggesting that the Bank for International Settlements (BIS) calls for interest rates to be raised "quickly and decisively" to prevent the surge in inflation from turning into something even more problematic.
The same joins geopolitical tension surrounding China and Russia to weigh on the risk appetite even if the US dollar fails to benefit from its safe-haven allure.
Also read: S&P 500 Futures, US Treasury bond yields portray anxiety ahead of central bankers’ debate
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.