Keep in mind, however, that the core PCE price index due today could remind traders of
weaker inflation expectations.
Not exact matches
While there are things out there that could disrupt the market,
inflation expectations are pretty muted and economic growth isn't particularly robust, but not
weak.
Higher interest rates, which bumped up due to factors like rising
inflation expectations, a
weaker dollar and growing national deficits, appear to have fueled the declines.
Among them are factors I've discussed at length elsewhere — a
weaker U.S. dollar, a steadily flattening yield curve, heightened market volatility, overvalued U.S. stocks,
expectations of higher
inflation, trade war jitters, geopolitical risks and more.
-- Add to this soft underlying
inflation expectations (hence the
weaker CPI outlook), that the BOJ mentioned in its statement.
When the yield curve flattens, it usually reflects
expectations of lower short - term interest rates in the future, a signal of
weaker economic growth or lower
inflation.
The New Zealand dollar continued to fall on Tuesday underpinned by
weak risk sentiment and a poorer than forecast
Inflation Expectation release.
Those market
expectations unwound over the course of 2017 when policy changes were slow to materialize and
weak inflation readings became the big surprise.
Next, the pound got slapped lower on Tuesday when the U.K.'s October CPI report was released since since headline
inflation in the U.K. only printed a
weak 0.1 % month - on - month rise, missing
expectations for a 0.2 % increase and slower than the previous month's +0.3 %.
was released since since headline
inflation in the U.K. only printed a
weak 0.1 % month - on - month rise, missing
expectations for a 0.2 % increase and slower than the previous month's +0.3 %.