US inflation expectations, as measured by the 10-year breakeven inflation rate per the St. Louis Federal Reserve (FRED) data, snapped a two-day downtrend by the end of Tuesday’s North American session, per the data source Reuters.

In doing so, the inflation gauge bounces off a fortnight low marked on Monday to 2.62% at the latest.

The jump in the inflation expectations could be linked to US President Joe Biden’s decision to nominate Jerome Powell for Federal Reserve (Fed) Chairman and Richard Clarida for Vice-Chair’s post.

The firmer inflation expectations underpin strong US Treasury yields and the US Dollar Index (DXY) of late.

However, the recent mixed PMI data from the US seems to challenge the greenback buyers ahead of a long line of the economic figures and events scheduled for Wednesday. Among them, October Durable Goods Orders, the second estimate of the Q3 Gross Domestic Product, the latest FOMC Meeting Minutes and October core PCE inflation are crucial.

Read: Forex Today: Dollar strong ahead of US first-tier events