US inflation expectations fall to new four-month low of 2.54%
U.S. inflation expectations, based on the 10-year breakeven inflation rate according to data from the St. Louis Federal Reserve (FRED), fell for the third day in a row to a new low since late February at the end of Wednesday’s North American session. That said, the latest print from the inflation gauge is 2.54%, the same as February 25.
The US Dollar appears to bear the brunt of the latest cut in inflation expectations as it remains under pressure around 104.20 after a three-day downtrend. With that, the greenback gauge is also bracing for the first in four weekly losses.
It should be noted that Fed Chairman Jerome Powell also showed readiness for higher rates, but stressed the reliance on data for the immediate benchmark rate hike. The same seems to have put downward pressure on US Treasuries yields and allowed equities to consolidate losses.
That said, S&P 500 futures are struggling for clear guidance while 10-year US Treasury yields remain under pressure around the weekly low, down 2.8 basis points to 3.13% at the time of the news. publication.
Going forward, US S&P Global PMIs for June and weekly jobless claims data will precede the second round of testimony from Fed Chairman Jerome Powell and it will be important to watch for clear market guidance. .
Also Read: US Dollar Index Remains Under Pressure Around 104.00 as Fed’s Powell Lacks Aggressive, US PMI Eyes