US inflation expectations hit March 2013 high

US inflation expectations, as measured by the 10-year breakeven inflation rate per the St. Louis Federal Reserve (FRED) data jumped to the highest levels in 8.5 years by the end of Wednesday’s North American trading.

In doing so, the risk barometer extends recovery moves from late September while flashing 2.57% at the latest.

While this favors risk assets and weighs on the safe-havens like the US dollar, the same also amplifies the Fed tapering concerns that seemed to have been ignored of late.

However, the flash readings of October’s activity numbers, up for publishing on Friday, may highlight the carry trade opportunities and help Antipodeans, especially the NZD/USD.

On the same line, EUR/USD may witness a pullback should the Eurozone data remain downbeat, favoring the European Central Bank’s (ECB) bearish bias.

Read: US Dollar Index Price Analysis: DXY bears keep 93.20 on radar