Curiously, in the face of a lack of price pressures, consumers still can’t shake off the fear of returning inflation. The latest survey revealed consumers expect an inflation rate of 3% in the next year, the highest reading since September, and 2.8% over the next 5-to-10 years.
Early North American trade has been riveting thus far as equities are turning higher, the euro has bounced somewhat after falling below 1.05, and the U.S. dollar isn’t faring as well as it has so far this week.
U.S. retail sales unexpectedly fell for a third straight month in February likely as harsh weather kept consumers from automobile showrooms and shopping malls, which could hurt growth prospects for the first quarter.
Yesterday marked the third session following Friday’s employment report big sell-off. The decline in the Eurodollar March 2016 contract was a 2.7 std dev move, the likes of which had not been seen since January of 2011. There was no meaningful recovery over the three sessions following that decline.