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US dollar weakens as markets cut odds for September Fed hike

BNY flags that downside in USD positioning hinges on the upcoming CPI release, with a CPI-driven rebound risk or continued bearishness.

Reported · Written up by our desk · Major Pairs

BNY’s Wee Khoon Chong said the US dollar has been the weakest G10 currency on iFlow metrics, citing markets that have scaled back expectations for a September Fed hike.

The note points to an employment miss and lower perceived tightening odds as weighing on the USD, while positioning looks “asymmetric” ahead of the next Consumer Price Index release.

FXStreet also highlights that an event-driven setup around CPI could either produce a sharp rebound in the dollar or reinforce current bearish positioning.

Alongside USD moves, FXStreet noted other major pairs were range-bound, with EUR/USD trading near 1.1550 and GBP/USD moving modestly above 1.3500 as traders weigh global developments, including uncertainty tied to Middle East tensions.

Latest closeEUR/USD 1.152 ▼0.3%|GBP/USD 1.345 ▼0.1%

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