Market Seeks Clues on US Fed Sept. Rate Cut
The market will be watching comments from US Federal Reserve’s Chair Jerome Powell later in the day for any fresh clues on the likelihood of a September rate cut.
U.S 30-year bonds turned positive for the first time since January, on growing bets of Donald Trump winning the presidential race after surviving an assassination attempt.
Analysts said potential Trump victory is unlikely to change the Fed’s path. US consumer price index has eased back closer to the U.S. central bank’s 2% annual target.
The US dollar retreated from earlier highs on Monday. of comments from Federal Reserve Chair Jerome Powell.
The dollar index (DXY), which measures the greenback against a basket of currencies, fell 0.23% at 104.05 after rising as high as 104.31, with the euro EURUSD up 0.09% at $1.0917. Sterling GBPUSD weakened 0.02% at $1.2989.
Powell is expected to speak at 12:30 p.m local time, kicking off a key week of commentary from Fed officials. Earlier on Monday, Chicago Federal Reserve Bank President Austan Goolsbee said interest rate cuts will soon be warranted.
Markets are currently pricing in a 94.4% chance of a rate cut of at least 25 basis points (bps) from the Fed in September, according to CME’s FedWatch Tool, after data last week showed consumer prices fell on a monthly basis for the first time in four years, in June. Energies Agencies Differ on Oil Supply, Demand Forecasts –Note
