Relationship Between The Dollar And Inflation Expectations Has Completely Reversed Since Summer

At least since 2003 (which is when our data on TIPS begins), the dollar and breakeven inflation expectations have had a negative relationship. Said differently, when the dollar strengthens (as it has done recently) inflation expectations tend to fall and vice versa. (note: the USD index is inverted in all the charts below)

This post was published at Zero Hedge on Dec 29, 2016.