Softer US Inflation Reduces Fed Hike Bets, BoC Seen on Hold
US inflation data came in softer than expected, reducing bets on a Federal Reserve rate hike, while Middle East tensions keep oil prices supported. The Bank of Canada is expected to hold its policy rate steady.
Investors scaled back expectations of a Federal Reserve rate hike following a softer-than-anticipated US inflation report released yesterday. The data tempered hawkish bets, though market participants remain watchful for further signals.
At the same time, ongoing Middle East tensions continue to underpin oil prices, adding a layer of uncertainty to the inflation outlook. The Bank of Canada is widely expected to hold its benchmark interest rate at the upcoming decision.
These developments keep currency markets in a mixed stance, with the US dollar facing pressure from the dovish Fed repricing while geopolitical risks support safe-haven flows.
Source: FXStreet Forex News