Range-bound Dollar as Fed odds ease – BBH

Brown Brothers Harriman’s (BBH) Elias Haddad notes the USD index (DXY) is trading near the lower end of its recent 99.50–100.00 range as cooling United States (US) Consumer Price Index (CPI) and Producer Price Index (PPI) have cut implied odds of a September Fed rate hike. Upcoming US retail sales and University of Michigan sentiment data are seen as unlikely to materially alter Fed funds futures pricing.

Dollar holds in tight DXY range

“The USD index (DXY) is trading near the lower end of this month’s tight 99.50-100.00 range. Cooling US CPI and PPI inflation in July trimmed the implied odds of a Fed rate hike in September to nearly 30%, the…

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