US Dollar: Fed repricing and inflation data steer path – Deutsche Bank
Deutsche Bank’s Early Morning Reid notes that softer US PCE revisions reduced expectations for an October Fed hike, even as the Dollar Index edged higher.
Deutsche Bank's early morning note indicates that the softer US PCE revisions are reducing expectations for an October Fed interest rate hike, despite the Dollar Index uptick. US economists at the bank foresee a December hike but believe the urgency for action in October is lessened, with market pricing for year-end tightening dropping from 47% to 37%. Core and headline PCE data came in below expectations, contributing to this shift in market sentiment.
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