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U.S. Inflation Expectations Hold Most Gains Since Election, Dollar Index DXY Continues to Sink

U.S. Inflation Expectations Hold Most Gains Since Election, Dollar Index DXY Continues to Sink

Bitget2025/01/24 16:36

The University of Michigan's consumer confidence survey in late January showed some signs of weakness, with the overall index falling to 71.1 from an initial reading of 73.2 earlier in the month and 74.0 at the end of December, the lowest level since the pre-election period (70.5 in October), suggesting more skepticism as a new administration is about to take office. The continuation of most of the gains in inflation expectations since the election may also be relevant. Median annual inflation expectations were unchanged from January's initial reading of 3.3%, up from 2.8% in December and 2.7% in October. Five-year interest rate expectations fell to 3.2% from 3.3% at the start of the month, but are still higher than the 3.0% seen in December and October last year, and the highest month-end rate since mid-2008.

The dollar index DXY is currently 15 points lower in the short term and is now at 107.25.

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