Bitcoin 
Ethereum 
Tether 
XRP 
BNB 
USDC 
Solana 
TRON 
Lido Staked Ether 
Figure Heloc 
Inflation perceptions over the previous 12 months seen at 3.1% (unchanged)Inflation expectations 12 months ahead seen at 2.8% (previously 2.7%)The qualitative measure continues to show an increase in the percentage of number of respondents expecting inflation to be higher in the next 12 months, now seen at 85.6% (previously 85.2%). As for the 2.8% median noted above and in the chart below, that’s the same as per August and the highest since May.
This article was written by Justin Low at investinglive.com.
đź’ˇ DMK Insight
Inflation expectations are creeping up, and here’s why that matters for traders: With inflation perceptions holding steady at 3.1% and future expectations rising to 2.8%, the market’s sentiment is shifting. An increasing 85.6% of respondents anticipate higher inflation in the next year, which could influence central bank policies and interest rates. For forex traders, this could mean volatility in currency pairs, especially those tied to interest rate differentials. If inflation continues to rise, we might see a stronger dollar as the Fed may feel pressured to tighten monetary policy sooner than expected. Keep an eye on the USD index and related pairs like EUR/USD or GBP/USD for potential breakouts or reversals. But here’s the flip side: if inflation expectations are rising without corresponding economic growth, we could see stagflation fears emerge, leading to risk-off sentiment in equities and crypto markets. Traders should monitor key levels in the S&P 500 and Bitcoin for signs of weakness. Watch for any comments from the Fed in upcoming meetings, as they could provide clues on how aggressive they might be in response to these inflation signals.
đź“® Takeaway
Watch the rising inflation expectations closely; a stronger dollar could impact forex pairs like EUR/USD while risk-off sentiment may hit equities and crypto markets.
