Inflation expectations in US and Eurozone hit record lows

Omkar Godbole FXStreet Contributor

The market-based measures of inflation expectations in the US and Eurozone have declined to record lows amid the even increasing fears of a coronavirus-led recession in the global economy.

The Eurozone five year, five-year inflation swap has dropped to 0.75% while its US counterpart has slipped to 1.25%, as noted by macro analyst Holger Zschaepitz.

The Federal Reserve injected massive amounts of liquidity into the system in the last two weeks. The European Central Bank also announced a Pandemic Emergency Purchase Programme worth EUR 750 billion. So far, however, the stimulus measures have failed to calm markets.

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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