US inflation expectations drop to the lowest in six weeks
US inflation expectations, as measured by the 10-year breakeven inflation rate, per the St. Louis Federal Reserve (FRED) data, decline for the fourth consecutive day by the end of Monday’s forecasts. In doing so, the inflation precursor drops to the lowest since April 27.
Given the US Federal Reserve’s (Fed) consistent efforts to defend easy money policies, by rejecting the reflation fears, the latest weakness in the US inflation expectations seems to have put a bid under the riskier assets, like commodities. The same weigh on the US dollar index (DXY) that wobbles around 90.00 after a two-day downtrend.
It’s worth noting that the US 10-year Treasury yields are also pressured of late, recently around 1.56%, which in turn exerts additional downside pressure on the greenback and favors the commodity buyers.
That said, prices of gold and silver refresh intraday top by the press time.
Read: Silver Price Analysis: XAG/USD directs three-day uptrend towards $28.00 amid downbeat USD
via FXStreet News https://ift.tt/3tYkUTd
June 7, 2021 at 06:04PM