Will that continue into the London fix later? That’s always the tricky part of dealing with price action and market flows during month-end trading. As things stand, it’s hard to gather all too much conviction amid the market moves we’re seeing in the past few sessions.
Fed funds futures are already pricing in ~84% odds of a 25 bps rate cut for September and ~54 bps of rate cuts by year-end. That underscores the prevailing sentiment going into the next FOMC meeting in the month ahead. US stocks are keeping the positive momentum though, with tech shares pushing higher again yesterday. That despite Nvidia slipping, though they are well off the lows posted right after the earnings release late Wednesday.
For the dollar, that’s about the few drivers in play as we look to wrap up the week. But on a day like this, month-end focus might dominate everything else and we’ll only get a better idea of where things stand come next week. Even then though, the focus will shift towards the US jobs report on 5 September next. From before:
- Weak dollar selling the signal this month-end – Barclays
- Mild dollar selling expected into month-end fix – Credit Agricole
This article was written by Justin Low at investinglive.com.