The U.S. Dollar is trading in tight yet favorable ranges to close out a week of data points that have put in doubt the Fed’s willingness to jump into interest-rate cuts at their September meeting.
Overview
Throughout the week, the Fed’s odds of reducing current interest rates by 25 basis points have been swinging up and down with growing concern that stubborn inflation may not lead to consensus to lower borrowing costs. Although basically guaranteed at 100.0% at the end of last week following the financial gathering at the Jackson Hole Symposium, the probability of a cut for September 17th is swimming in the low 80s.
Today, evidence of price growth came out in the form of core Personal Consumption Expenditures, which expanded in July and changed by 2.9% from year to year. Additionally, the economic situation may not merit a stimulus-driven mentality, nor approach, with U.S. Consumer Spending in July climbing by the most in four months. Overall, there is not a lot of data pointing to the economy requiring aid. Fed officials may prioritize not risking exacerbating inflationary pressures. Later at 10AM, we will get the results of the University of Michigan Consumer Sentiment survey for August.
We shall see if there is much that can move the needle for FX on a Friday before a three-day weekend in America. Thus far this month, the Buck has dwindled in value by 1.4% per the Bloomberg Dollar Spot Index.
On Monday, September 2nd, MonexUSA will be closed in observance of the Labor Day holiday.
What to Watch This Week…
- Monex USA Online is always open
