Malaysia's Maybank expects US CPI: Inflation in line with expectations will reduce bets on the Fed's aggressive rate cuts.
According to an Odaily foreign exchange research and strategy report, market participants generally expect that the US core CPI year-on-year will decline slightly from 3.3% in June to 3.2% in July. Inflation data that meets this expectation would be the most favorable for the market. Although such data may further reduce bets on the Federal Reserve's aggressive rate cuts and may cause the US dollar to rise further, the improvement in risk sentiment may slow the rise of the US dollar.
