US inflation expectations stabilize near one-week high ahead of CPI data

Anil Panchal FXStreet

US inflation expectations, as per the 10-year and 5-year breakeven inflation rates from the St. Louis Federal Reserve (FRED) data, justify the market’s indecision as the numbers fade the week-start recovery moves ahead of the all-important US Consumer Price Index (CPI) for April.

It’s worth noting that the 10-year and 5-year inflation precursors remained steady near 2.23% and 2.22% on Tuesday, repeating Monday’s figures at the highest levels in a week.

With this, the market’s expectations of softer prints of the CPI ex Food and Energy, also known as the Core inflation data, gain acceptance and weigh on the US Dollar Index (DXY) price. That said, the greenback’s gauge versus the six major currencies snap a two-day rebound near 101.50 by the press time.

Meanwhile, US CPI forecasts suggest mostly unchanged CPI YoY and an improvement in the monthly figure. Should the data suggest escalating inflation pressure in the world’s biggest economy, the recently hawkish Fed bets may gain momentum and can allow the US Dollar to pare intraday losses.

Also read: US April CPI Preview: How will inflation data influence Fed rate outlook?

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.

GBP/USD weakens below 1.3250 as UK Prime Minister Keir Starmer resigns

The GBP/USD pair loses ground to near 1.3245 during the early Asian trading hours on Tuesday. Political uncertainty in the United Kingdom continues to weigh on the British Pound against the US Dollar. The preliminary readings of the S&P Global Purchasing Managers Index from both the US and the UK are due later on Tuesday.

EUR/USD moves little amid market caution on ongoing US-Iran talks

EUR/USD steadies after registering modest losses in the previous day, trading around 1.1430 during the Asian hours on Tuesday. The currency pair remains locked in a tight range as traders closely monitor diplomatic developments surrounding ongoing talks between Washington and Tehran in Bürgenstock, Switzerland.

Gold holds lower ground near $4,150 on hawkish Fed bets

Gold struggles to capitalize on the previous day's modest gains and edges lower to near $4,150 in the Asian session on Tuesday. Firming expectations for a Fed rate hike and geopolitical uncertainties help the US Dollar to stand firm near its highest level since May 2025, undermining bullion.

NYSE parent ICE, OKX partners to expand tokenized equities and digital asset markets

The New York Stock Exchange parent company, Intercontinental Exchange, and crypto exchange OKX have formed a joint venture to develop infrastructure for tokenized and blockchain-native financial products, according to a statement on Monday. The venture will seek to operate as a US-registered broker-dealer and futures commission merchant, subject to regulatory approvals.

Are American consumers actually “resilient“?

A common label gets placed upon American buyers: resilient. Just last week, Marianne Lake, the CEO of Consumer and Community Banking — and a member of the JPMorganChase Operating Committee — affirmed this sentiment. While she did note some weariness regarding future inflation’s effect on consumers, she reiterated the common adjective: resilient.

Regime change: Inside Kevin Warsh's first move to make the Fed unreadable on purpose

The rate did not move. That was the least interesting thing about Kevin Warsh's first meeting in charge of the Fed. The FOMC held its benchmark at 3.50%-3.75% for the fourth straight meeting, exactly as priced, and then the new chair used his first press conference to dismantle the machinery the market has leaned on for a decade.