BNY: Softer Data Eases Fed Tightening Pressure, Services PMI Next
BNY strategist Geoff Yu notes that softer US labor data and easing inflation have reduced the need for further Fed tightening, but upcoming Services PMI and ISM Services reports will be critical for shaping rate expectations.
BNY's Geoff Yu observes that recent US labor data has softened and inflation is easing, which together have diminished pressure on the Federal Reserve to continue tightening monetary policy.
However, the next key input for rate expectations will be the upcoming US Services Purchasing Managers' Index (PMI) and the ISM Services report. These data points will determine whether the current dovish repricing of Fed policy remains justified.
Source: FXStreet Forex News