As a reminder, the repricing in rate cuts expectations reached the peak after the last US NFP report and then the market returned into a dovish pricing following the benign US inflation data (the market is still pricing roughly two rate cuts for 2025). The US 10 year yield below offers a great example.
That doesn't mean that the Fed will cut more than the two times projected for this year but it also doesn't call for a more hawkish repricing. So, the path of least resistance for the US Dollar (barring negative tariffs outcomes) might remain to the downside as the market is more likely to move into a more dovish path.
This article was written by Giuseppe Dellamotta at www.forexlive.com. Read More Details
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