7/28/2021 12:59:43 AM GMT | By Anil Panchal
US inflation expectations, as measured by the 10-year breakeven inflation rate, per the St. Louis Federal Reserve (FRED) data, eased from the seven-week top on Tuesday. In doing so, the risk barometer fades the one-week-old recovery moves, suggesting further hardships for the traders to predict the market sentiment.
The drop in inflation expectations could be linked to the latest US data concerning housing prices and Durable Goods Orders as the figures slipped beneath the market forecasts but the previous readouts were revised up. Also challenging the inflation expectations could be the latest Delta covid strain fears in the Asia-Pacific, as well as in the West.
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