OCBC: Softer PPI, Lower Yields Trim Fed Hike Bets and Limit Dollar
OCBC analysts say softer US PPI and lower Treasury yields have reduced market expectations for a September Fed hike, limiting the US dollar.
DXY
OCBC currency strategists Sim Moh Siong and Christopher Wong point to softer US producer price data and lower Treasury yields as the reason markets are trimming bets on a September Federal Reserve rate increase. That repricing is limiting the US dollar.
With the Fed seen on hold, carry trades remain supported, according to the OCBC note. The analysts highlight that reduced odds of a near-term hike and lower US yields are weighing on the dollar’s appeal.
Source: FXStreet Forex News