US inflation expectations drop to two-week low ahead of US NFP
US inflation expectations, as measured by the 10-year breakeven inflation rate per the St. Louis Federal Reserve (FRED) data, dropped for the third consecutive day to by the end of Thursday’s North American session, per the FRED website.
That said, the inflation gauge dropped to the 2.46% level at the latest, the lowest readings since December 21.
The softer inflation expectations test the market fears of the Fed’s early rate hike, which in turn challenge US Treasury yields and US dollar advances.
It’s worth noting that the recently hawkish Fedspeak and FOMC Minutes weighed on the commodity prices. As a result, the US 10-year Treasury yields refreshed a nine-month high to poke 1.75% before closing with 2.5 basis points (bps) of a daily gain near 1.728%. The same weighed on the Wall Street benchmarks even as downbeat data pushed bears to satisfy with smaller losses.
While the easy inflation expectations may allow traders to pare recent losses linked to the commodities and Antipodeans, hawkish hopes from the scheduled US jobs report may favor the US bond yields and the US dollar, which in turn may weigh on the commodities.
Read: Gold Price Forecast: XAU/USD bears await US NFP near five-month-old support below $1,800
Reprinted from FXStreet_id，the copyright all reserved by the original author.
Disclaimer: The content above represents only the views of the author or guest. It does not represent any views or positions of FOLLOWME and does not mean that FOLLOWME agrees with its statement or description, nor does it constitute any investment advice. For all actions taken by visitors based on information provided by the FOLLOWME community, the community does not assume any form of liability unless otherwise expressly promised in writing.
FOLLOWME Trading Community Website: https://www.followme.com
Hot
No comment on record. Start new comment.