Mr. Market Has Nailed the Next Big Move for Inflation

10/02/17 07:21AM EDT

Editor's Note: Below is a brief excerpt from today's Early Look written by Hedgeye CEO Keith McCullough. Click here to learn more about the Early Look. 

Mr. Market Has Nailed the Next Big Move for Inflation - 10.02.17 EL Chart

Reflation can be #refreshing, for both FX and Rates, indeed:

  1. Oil (WTI) rallied another +2.0% last week back to Bullish TREND @Hedgeye
  2. US Dollar Index was up +1.0% last week, taking it higher for the 3rd week in a row
  3. UST 10yr Yield ramped another +8 basis points last week to +2.33% = Bullish TREND @Hedgeye too

Another measure of Reflation’s Reflation is the US 5-year 5-year-forward Break-even Rate bouncing back to +1.95%. Given the move in Oil, that’s pretty close to where headline US inflation (CPI) should be reported for the month of September.


Mr. Market Has Nailed the Next Big Move for Inflation - early look

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