Market news
10.01.2023, 00:59

US 5-year, 10-year inflation expectations probe Fed policy doves

US inflation expectations as per the 10-year and 5-year breakeven inflation rates per the St. Louis Federal Reserve (FRED) data appear to challenge the hopes of easy Fed rate hikes, which in turn justify the US Dollar’s latest rebound.

That said, the US Dollar Index (DXY) bounces off a seven-month low to 103.30 as it snaps a two-day downtrend amid recently hawkish Fed talks.

It’s worth noting that the latest prints of the 5-year and 10-year inflation expectations portray a stead print of 2.18% and a recovery to 2.22% respectively.

On Monday, the Federal Reserve Bank of New York's monthly Survey of Consumer Expectations showed that the US consumers' one-year inflation expectation declined to 5% in December from 5.2% in October.

Also read: US Dollar Index bounces off seven-month low ahead of Fed Chair Powell’s speech

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