13 May 2024

Foreign exchange markets are holding steady this morning as traders take cover ahead of a series of critical inflation reports that could determine the outlook for rate cuts from the Federal Reserve this year. The dollar is little changed against its major rivals, Treasury yields are moving sideways, and North American equity futures are pointing to incremental gains at the open. Today’s Survey of Consumer Expectations from the New York Fed is likely to echo Friday’s equivalent from the University of Michigan, with inflation expectations rising toward a six-month high. Household views on inflation tend to follow changes in gas...