US inflation expectations join the forces to support US Dollar Index rebound
|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 latest reassessment of the Federal Reserve (Fed) concerns by grinding higher in the last few days. In doing so, the inflation precursors favor the easing talks of the Fed policy pivot, as well as the rate cut, during 2023.
Also read: US Dollar Index: Could a double bottom at the weekly chart drive the DXY to 111.000?
That said, the Five-year and 10-year breakeven inflation rates from the St. Louis Federal Reserve (FRED) gradually improve to 2.31% and 2.30% figures by the end of Friday’s North American session.
The latest recovery in inflation precursors joins the University of Michigan's (UoM) one year ahead of Consumer Inflation expectations, which rose from 3.6% in March to 4.6% in April.
With this, the US Dollar Index (DXY) defends the late Friday’s recovery from a one-year low to around 101.60 as traders await this week’s preliminary readings of April’s Purchasing Managers Indexes (PMIs).
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.