Dollar unable to recover more at the moment due to uncertainty surrounding the debt issue – Commerzbank
|On the inflation front, progress is slow. Antje Praefcke, FX Analyst at Commerzbank, believes that the debt ceiling issue is dampening the Dollar at the moment.
Caution about rapid rate cuts in the US
“On a MoM comparison the inflation for both rates remained stubbornly at 0.4%. That means that price pressure in the US is falling, but only very, very slowly. In the face of an inflation rate falling this slowly, and remaining well above the inflation target, the Fed would probably not consider cutting its key rate again in the autumn.”
“I think inflation will have to weaken considerably more before the Fed considers first rate cuts. The Dollar is unable to recover more at the moment due to the uncertainty surrounding the debt issue.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.