Investors brace for potential rate cuts as U.S. inflation slows, pushing the dollar lower and the euro to an eight-month high. Meanwhile, Japan’s economy sees a faster-than-expected growth, adding to the global economic picture.
Market analysts predict a 25 basis point cut by the Federal Reserve next month, with a 64% chance of a cut and a 36% chance of a 50 bps reduction. The Fed is expected to make a total of 100 bps cuts this year, following the downward trend in inflation.
As the U.S. retail sales data looms, investor focus shifts to potential interest rate cuts from central banks around the world. The Australian dollar and New Zealand dollar face pressure after recent rate cuts, while the yen remains steady despite political turmoil in Japan.
Overall, the global economic landscape is signaling a cautious approach from central banks, with markets closely watching for any signs of further rate cuts to stimulate growth and combat slowing inflation.