According to Odaily, Commerzbank has noted that the recent Producer Price Index (PPI) data came in slightly below analysts' expectations, putting pressure on the US dollar. This is partly because some components of the PPI are directly included in the calculation of the Personal Consumption Expenditures (PCE) index, which is the Federal Reserve's preferred measure of inflation. The lower-than-expected PPI has also raised hopes that today's Consumer Price Index (CPI) data might also come in below expectations. However, the bank anticipates that the risk for the dollar remains tilted to the upside, and the Federal Reserve is unlikely to consider more rapid or aggressive rate cuts simply because inflation is approaching the 2% target more quickly. The current annualized rate of around 3% is still considered too high, despite recent low monthly figures. If inflation exceeds expectations, contrary to today's hopes, the likelihood of a 50 basis point rate cut in September would diminish significantly. The bank's economists have recently reiterated their expectation that the US will not experience a recession in the short term. In this scenario, they believe it is unlikely that the Federal Reserve will implement a 50 basis point rate cut in any of the remaining three meetings this year, as the market has priced in. It is more likely that any such decision would be linked to a specific data point rather than a gradual shift. While this may not happen today, it is expected to occur at some point in the coming weeks.