Fed Hike Odds Trimmed on Softer US Data: Deutsche Bank
Deutsche Bank strategists note that easing inflation fears and softer US data have led markets to scale back expectations for additional Federal Reserve tightening in 2026. The Dollar Index is slightly lower, with jobless claims at a three-month high and Treasury yields declining.
Deutsche Bank strategists report that markets are reducing bets on further Federal Reserve rate hikes in 2026 due to a combination of softer US economic data and easing inflation concerns.
The Dollar Index (DXY) edged lower following the release of jobless claims, which hit a three-month high. Treasury yields also declined, reflecting the shift in rate expectations. The data suggests a potential slowdown in the US economy, tempering the hawkish outlook for monetary policy.
Source: FXStreet Forex News