US inflation expectations jump to highest since 2005

Anil Panchal FXStreet

US inflation expectations, as measured by the 10-year breakeven inflation rate per the St. Louis Federal Reserve (FRED) data, jumped to the fresh high since March 2005 while hitting the 2.76% level by the end of Monday’s North American session.

In doing so, the inflation gauge posts a one-week uptrend, also fueling the Fed rate hike expectations, ahead of the key US Retail Sales figures for October, expected to keep 0.7% MoM growth.

Also portraying the market’s rate hike fears is the jump in the US 10-year Treasury yields to a three-week high, around 1.618% at the latest.

Although the Fed rate hike chatters weigh on the sentiment and favor the US dollar bulls, US stimulus chatters and the Sino-American talks favor the market’s mood of late.

Read: AUD/USD bulls pause around 0.7350 with eyes on RBA Minutes, Governor Lowe

A stronger print of the US Retail Sales data could trim the market’s bullish bias towards the Fed’s next move and may help the greenback to consolidate the recent gains.

Read: US Retail Sales October Preview: Inflation Is the key, not Retail Sales

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

EUR/USD flirts with daily highs, retargets 1.1900

EUR/USD regains upside traction, returning to the 1.1880 zone and refocusing its attention to the key 1.1900 barrier. The pair’s slight gains comes against the backdrop of a humble decline in the US Dollar as investors continue to assess the latest US CPI readings and the potential Fed’s rate path.

GBP/USD remains well bid around 1.3650

GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.

Gold clings to gains just above $5,000/oz

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The precious metal’s move higher is also underpinned by the slight pullback in the US Dollar and declining US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

Week ahead – Data blitz, Fed Minutes and RBNZ decision in the spotlight

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.