US inflation expectations retreat from monthly high
|US inflation expectations, as per the 10-year breakeven inflation rate per the St. Louis Federal Reserve (FRED) data, ease from the monthly high by the end of Wednesday’s North American session. The inflation gauge recently flashed the 2.38% mark, reversing from the previous day’s multi-day of 2.39%.
The recent weakness in the US inflation expectations failed to defy the recession fears, signaled by the inversion of the 2-year and the 10-year Treasury yield curve. That said, the US 2-year Treasury yields are higher, around 3.23%, while the 10-year bond coupon seesaws near 3.03% at the latest.
Overall, the inflation expectations are in recovery mode and appear to weigh on the market sentiment, which can help the US dollar regain its upside momentum after a week of a pullback from a nearly 20-year high.
It’s worth noting that the US Dollar Index (DXY) bounced off a two-week low to snap the three-day downtrend the previous day as market sentiment soured.
Also read: Forex Today: Sentiment sours amid recession fears and ahead of the ECB
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.