US inflation expectations, as per the 10-year and 5-year breakeven inflation rates from the St. Louis Federal Reserve (FRED) data, challenge the market’s latest risk-on mood by refreshing the multi-day top.

That said, the 10-year and 5-year breakeven inflation rates from the St. Louis Federal Reserve (FRED) jumped to the highest levels since March 07 and 09 respectively while renewing the multi-day tops with 2.34% and 2.40% figures by the end of Thursday’s North American session.

The same joins the recent hawkish rhetoric from the Federal Reserve (Fed) to raise fears of a positive surprise from the Fed’s preferred inflation gauge, namely the US Core Personal Consumption Expenditure (PCE) Price Index for February.

Although the inflation figure is likely to remain unchanged at 4.7% YoY, the monthly figure is expected to ease to 0.4%, from 0.6% prior.

Hence, there prevails a discord between the market forecasts for the inflation data and the inflation expectations per the FRED, making it interesting for US Dollar traders to watch today’s economics closely.

Also read: US Dollar Index slides towards 102.00 despite hawkish Fed talks, focus on inflation