EURUSD below 1.2100, Wall Street at weekly lows
The UoM consumer confidence report, apart from the decline, showed an increase in inflation expectations in the 1 and 5-year perspective. More importantly, the 1-year outlook has risen to a staggering 3%, putting a question mark over price stability in the US. Higher inflation expectations are poor news for indices, which fell after publication of today's reading, but positive news for the US dollar. Theoretically, a boom in inflation could slightly change the monetary policy in the United States in the longer term.
US inflation expectations are rising very strongly. Source: Macrobond, XTB
EURUSD below 1.2100, the lowest since December 10. Source: xStation5
