US inflation expectations, as per the 10-year breakeven inflation rate per the St. Louis Federal Reserve (FRED) data, rose for the second consecutive day by the end of Thursday’s North American session.

That said, the inflation gauge rose from 2.56% to 2.62% at the latest as traders await the Fed’s preferred inflation barometer, namely the US Core Personal Consumption Expenditure (PCE) Price Index for April, for better decision-making.

It’s worth noting that the recently downbeat US data and confirmations of the Fed’s 50 bps rate hikes in the next two meetings favored market sentiment and dragged the US dollar.

While portraying the mood, Wall Street benchmarks portrayed the second day of gains whereas the US 10-year Treasury yields remained indecisive around 2.75%. Further, S&P 500 Futures begins Friday without any major surprises around 4,055, down 0.05% intraday at the latest.

To sum up, the recently firmer inflation expectations may help the US dollar consolidate weekly losses amid the market’s anxiety ahead of the key data.

Read: US Core PCE Preview: Why there is room for a dollar-lifting upside surprise

This article was originally published by the original article here.


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