 Dollar's rebound is gathering momentum, as fueled by yesterday's data indicating a resurgence in the services sector, which could impede disinflation progress. While fed fund futures still reflect over 50% probability of a rate cut in September, there is now a 0.6% chance of a rate hike—an occurrence not seen for quite some time. Currently, the Dollar is the week's strongest performer, with the upcoming durable goods orders report likely to influence its next move. Sterling follows as the second strongest currency this week, supported by higher-than-expected inflation data, which quashed hopes for a June rate cut by BoE. The focus now shifts to the upcoming UK retail sales data for further direction. Euro is also performing well as the third strongest, bolstered by strong Eurozone PMI data. In contrast, Australian Dollar is the worst performer this week, dragged down by pullback in global risk sentiment. Yen is the second weakest, followed by New Zealand Dollar. Swiss Franc and Canadian Dollar are positioned in the middle... |
