NY Fed Consumer Inflation Expectations mostly unchanged, job market weakening
The New York Federal Reserve Bank released its May Survey of Consumer Expectations (SCE), in which households expect inflation to edge down a tick, despite upward pressures from the Middle East conflict.

The New York Federal Reserve Bank released its May Survey of Consumer Expectations (SCE), in which households expect inflation to edge down a tick, despite upward pressures from the Middle East conflict.

Respondents said that inflation over the next 12 months is expected to dip from 3.6% to 3.5%, while over the 3- and 5-year periods, prices are projected to remain at 3.1% and 3%, respectively.

The SCE revealed that expectations for future credit availability deteriorated, with a minority speculating that it will be easier to get credit in the year ahead. The mean perceived probability of finding a job if getting laid off decreased to 43.7%, below its 12-month average of 46.8% and its lowest reading since December of last year.

US Dollar Price Today

The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the strongest against the Swiss Franc.

USD EUR GBP JPY CAD AUD NZD CHF
USD -0.17% -0.01% -0.13% 0.10% -0.05% -0.37% 0.17%
EUR 0.17% 0.15% 0.04% 0.27% 0.10% -0.17% 0.32%
GBP 0.00% -0.15% -0.13% 0.11% -0.09% -0.32% 0.15%
JPY 0.13% -0.04% 0.13% 0.21% 0.04% -0.21% 0.26%
CAD -0.10% -0.27% -0.11% -0.21% -0.16% -0.43% 0.04%
AUD 0.05% -0.10% 0.09% -0.04% 0.16% -0.26% 0.23%
NZD 0.37% 0.17% 0.32% 0.21% 0.43% 0.26% 0.47%
CHF -0.17% -0.32% -0.15% -0.26% -0.04% -0.23% -0.47%

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).

Inflation FAQs

Inflation measures the rise in the price of a representative basket of goods and services. Headline inflation is usually expressed as a percentage change on a month-on-month (MoM) and year-on-year (YoY) basis. Core inflation excludes more volatile elements such as food and fuel which can fluctuate because of geopolitical and seasonal factors. Core inflation is the figure economists focus on and is the level targeted by central banks, which are mandated to keep inflation at a manageable level, usually around 2%.

The Consumer Price Index (CPI) measures the change in prices of a basket of goods and services over a period of time. It is usually expressed as a percentage change on a month-on-month (MoM) and year-on-year (YoY) basis. Core CPI is the figure targeted by central banks as it excludes volatile food and fuel inputs. When Core CPI rises above 2% it usually results in higher interest rates and vice versa when it falls below 2%. Since higher interest rates are positive for a currency, higher inflation usually results in a stronger currency. The opposite is true when inflation falls.

Although it may seem counter-intuitive, high inflation in a country pushes up the value of its currency and vice versa for lower inflation. This is because the central bank will normally raise interest rates to combat the higher inflation, which attract more global capital inflows from investors looking for a lucrative place to park their money.

Formerly, Gold was the asset investors turned to in times of high inflation because it preserved its value, and whilst investors will often still buy Gold for its safe-haven properties in times of extreme market turmoil, this is not the case most of the time. This is because when inflation is high, central banks will put up interest rates to combat it. Higher interest rates are negative for Gold because they increase the opportunity-cost of holding Gold vis-a-vis an interest-bearing asset or placing the money in a cash deposit account. On the flipside, lower inflation tends to be positive for Gold as it brings interest rates down, making the bright metal a more viable investment alternative.

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COTAÇÕES AO VIVO

Nome / Símbolo
Gráfico
% Variação / Preço
GBPUSD
Variação 1 dia
+0%
0
EURUSD
Variação 1 dia
+0%
0
USDJPY
Variação 1 dia
+0%
0

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