The U.S. Dollar is trading in favorable ranges across the bard averaging a half a percent improvement as odds of Federal Reserve interest-rate cuts dwindled a bit.
Overview
Indeed, September meeting chances for a 25bps reduction dropped below 90.0%, now 87.0%, this is after a week or so of not even seeing odds above 100.0% basically guaranteeing that borrowing costs would certainly be lowered.
Commentary from Fed members is leading to the belief that there is a lack of consensus about how to act for the rest of the year. Fed member John Williams said that the committee’s stance remains modestly restrictive and that the Fed’s independence is crucial in maintaining faith in the financial system. Overall, the idea that a rate cut may not be prioritized is good for the Buck’s buoyancy.
While there is no major piece of data to be released today, tomorrow’s second revision of Gross Domestic Product is set to show a bit higher reading than the original 3.0% result. If it materializes as an extra 0.2-0.3%, expect room for the Buck to grow.
What to Watch This Week…
- US GDP Q2 2nd Est, Thursday 8:30 AM
- US PCE Deflator Index JUL, Friday 8:30 AM
- France & Germany GDP & CPI, Friday
- Monex USA Online is always open
