Traders upped their bets that the Federal Reserve would cut interest rates in September. After the release of the US CPI, the dollar index DXY fell more than 30 points in the short term to 98.25.
Traders upped their bets on the Federal Reserve cutting interest rates in September, with the news that Fed Governor David Kugler will resign next week, allowing Trump to appoint a favoured candidate ahead of schedule.
Traders upped their bets on a rate cut by the Federal Reserve in December, pricing in a probability of about 75 per cent, compared with 60 per cent before the US inflation data.
On August 21, before the release of the US employment revision data, traders increased their bets on the Federal Reserve to cut interest rates, and now expect the Federal Reserve to cut interest rates by 100 basis points in 2024.