The Dollar Index to ease back towards 102 – DBS
|The USD’s near-term direction will hinge on US CPI tonight, especially after markets were wrong-footed by strength in non-farm payrolls, DBS’ FX analyst Philip Wee notes.
25bps rate cut would be more appropriate
“Consensus expects inflation to ease to 2.3% y/y, and a downside surprise could see the DXY index easing back towards 102.”
“Fed rate cut expectations have already been trimmed to just two more 25bps cuts for the rest of the year. The September FOMC minutes released overnight indicate that some attendees believe that a 25bps cut would be more appropriate, although only Bowman voted against a 50bps cut.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.