US inflation expectations, as per the 10-year breakeven inflation rate per the St. Louis Federal Reserve (FRED) data, rose for the third consecutive day by the end of Friday’s North American session.
That said, the inflation gauge rose from 2.62% to 2.63% at the latest as traders gained mixed signals from the Fed’s preferred inflation barometer, namely the US Core Personal Consumption Expenditure (PCE) Price Index for April.
That said, the US Personal Consumption Expenditure (PCE) data came in mixed for April, mostly downbeat, as the Core PCE Price Index matched 4.9% YoY forecasts versus 5.2% prior. Further, Personal Income rose less than expected but the Personal Spending improved.
Following the data release, The Times came out with the analysis suggesting inflation puts further pressure on the Fed to lift interest rates. The same could be linked to the latest US dollar consolidation from the monthly low during Monday’s Asian session.