According to BlockBeats, on August 5, the currency market significantly increased its bets on the Federal Reserve easing its monetary policy, surpassing the expectations of policymakers. Shortly after, the market also heightened its bets that the European Central Bank would follow the Federal Reserve in cutting interest rates.
Traders currently believe there is a 60% chance that the European Central Bank will cut interest rates by 50 basis points in September. This follows the market's full anticipation that the Federal Reserve will reduce interest rates by 50 basis points in September. Meanwhile, the likelihood of the Bank of England cutting interest rates by 25 basis points is also rising.
These bets may continue as the market generally moves away from risk assets, increasing the safe-haven buying of bonds.
