USD Softens as Yields Fall and Fed Hike Bets Recede
MUFG's Lee Hardman says the U.S. dollar is trading on a softer footing as softer labor data and a mixed PPI prompt markets to scale back Federal Reserve rate hike expectations.
DXY
The U.S. dollar is under gentle pressure, according to MUFG's Lee Hardman, with falling yields accompanying the move.
Recent weaker labour market data and a mixed U.S. producer price index have led traders to reassess the path for Federal Reserve policy. As a result, expectations for further rate hikes are being scaled back, weighing on the greenback.
Hardman notes the softer tone in USD reflects this shift in rate expectations rather than a sharp deterioration in the U.S. outlook.
Source: FXStreet Forex News