Sponsor XM Group - Trade Forex, Stocks, Commodities, Indices & More. Ultra-Low Spreads, Fast Execution, Licensed Broker.
START TRADING WITH XM

Markets reassess Fed 50bp cut probability after inflation data

rttnews.com Sentiment: Neutral
Financial markets are recalibrating Federal Reserve rate cut expectations following stronger-than-expected US inflation data. The probability of a 50 basis point cut at the September FOMC meeting has declined sharply, with markets now favoring a more measured 25bp reduction. EUR/USD retreated from recent highs above 1.10 to trade at 1.0925, while GBP/USD fell 0.3% to 1.2785. Gold futures pulled back $18 to $2,487 per ounce as rising real yields reduced the appeal of non-yielding assets. The shift in sentiment reflects growing uncertainty about the pace of disinflation, with producer prices showing unexpected strength. Treasury markets have repriced accordingly, with the 10-year yield climbing to 3.95%. Traders are now focused on upcoming CPI data and Fed communications for further clarity on the monetary policy trajectory, with most analysts expecting a gradual easing cycle rather than aggressive cuts.

Related Symbols:

EURUSD GBPUSD

News data provided by Marketaux. ForexSentiment.live provides this summary as a convenience with proper attribution to the original source. The full article is available at the original publisher's website.

Trade with XM Group

XM - Licensed broker with 15+ years of excellence. Trade 1000+ instruments on MT4/MT5. Spreads as low as 0.6 pips, leverage up to 1000:1, fast execution.

START TRADING NOW
Telegram Icon