⚡ Easily Trade – Apple, Microsoft, Tesla and Google Stocks – Open a FREE Account Here

      

Late Comeback in USD on High NY FED Inflation Expectations

The USD started the US session on the wrong foot, retreating against most currencies, but made a bullish reversal before the session ended. EUR/USD returned below 1.08, while USD/JPY climbed above 156, which opens the door for further gains toward 160.

The Greenback Is Holding On To Slight Gains After the NY FED inflation expectations

BrokerReviewRegulatorsMin DepositWebsite
🥇Read ReviewASIC, FSA, CBI, BVI, FSCA, FRSA, CySEC, ISA, JFSAUSD 100Visit Broker >>
🥈Read ReviewFMA, FSAUSD 50Visit Broker >>
🥉Read ReviewFSCA, CySEC, DFSA, FSA, CMAUSD 0Visit Broker >>
4Read ReviewCySEC, MISA, FSCAUSD 5Visit Broker >>
5Read ReviewFCA, CySEC, FSCA, SCBUSD 100Visit Broker >>
6Read ReviewFCA, FINMA, FSA, ASICUSD 0Visit Broker >>
7Read ReviewCySEC, FCA, FSA, FSCA, Labuan FSAUSD 100Visit Broker >>
8Read ReviewCBCS, CySEC, FCA, FSA, FSC, FSCA, CMAUSD 10Visit Broker >>
9Read ReviewASIC, CySEC, FSCA, CMAUSD 100Visit Broker >>
10Read ReviewIFSC, FSCA, ASIC, CySECUSD 1Visit Broker >>

One of the reasons for this was the higher inflation expectations by the NY FED, besides comments from FOMC members about keeping interest rates elevated. The New York Fed’s inflation expectations report provides insight into how consumers perceive future price trends and economic conditions. Overall, the report highlights consumers’ concerns about inflation and job opportunities, as well as their expectations for price increases in key sectors like housing and commodities. Here’s a breakdown of the key points:

New York FED Inflation Expectations

  1. Rise in short-term inflation expectations: The 1-year inflation expectations have increased to 3.3% from the previous level of 3.0%. This suggests that consumers anticipate higher inflation over the next year.
  2. Decline in medium-term inflation expectations: The 3-year inflation expectations have decreased to 2.8% from 2.9% last month. Similarly, the 5-year inflation expectations have risen to 2.8% from 2.6% last month. This indicates some variation in expectations across different time horizons.
  3. Confidence in job security: The report shows an increase in confidence among consumers regarding keeping their current jobs but a decrease in confidence about finding new ones. This suggests that while people feel secure in their current employment, they may be less optimistic about job opportunities in the future.
  4. Expectations for home prices and commodities: Consumers anticipate increases in home prices and commodity prices, reflecting expectations of inflationary pressures in these sectors.
  5. Earnings growth expectations: Expectations for earnings growth have declined to 2.7%, but they remain above pre-pandemic trends. This indicates that while consumers expect some growth in earnings, it may not be as robust as previously anticipated.

USD/JPY Live Chart

USD/JPY
Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies
ABOUT THE AUTHOR See More
Avatar
Skerdian Meta
Lead Analyst
Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
Related Articles