⚡️US yields also saw volatility, falling to lows not seen since August 10, but then cleared some losses. The decline of the yields hints at investors betting on lower odds of a Federal Reserve (Fed) interest rate hike this year. The CME FedWatch tool depicts that the likelihood of a 25 basis point (bps) increase at nearly 35% in November and December after rising to nearly 50% this week.
⚡️Ongoing data will continue helping investors model their expectations towards the upcoming September 20 meeting and as long as investors continue betting for no hikes for the remainder of 2023, the USD’s upside is limited.
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