Home›Forex›Major Pairs›Dollar bearish momentum continues after July CPI in li…

Dollar bearish momentum continues after July CPI in line with forecasts

TD Securities said the CPI mix supports a near-term Fed hold, with the market still pricing a September hike at just under 50%.

Reported · Written up by our desk · Major Pairs

TD Securities strategists said bearish momentum for the US dollar extended after July inflation data came in broadly in line with expectations.

Headline CPI rose 0.1% month over month, while core CPI increased 0.2% m/m, with gasoline down 3% m/m and food inflation slowing, they said.

They pointed to signs of normalization in services inflation and contained tariff pass-through as reducing the need for tighter Federal Reserve policy, while still expecting the Fed to keep its policy stance unchanged this year.

The strategists added that markets were little changed after the release, with pricing for a September rate hike still just under 50%, and they flagged the upcoming PPI report as a risk to their core PCE forecast.

Latest closeGasoline (RBOB) $2.892 ▼7.8%

More like this

Sources