bets are piling up, driving lower while helping stabilize. and fresh Fed commentary could determine if the moves gather pace.
- Rate cut bets weigh on the dollar, boosting EUR/USD and sinking USD/JPY
- Daly’s dovish shift fuels talk of more than two cuts this year
- ISM services PMI and Fed commentary now in focus
US Dollar Forecast Summary
Last Friday’s weak July U.S. continues to weigh on the , with markets now pricing the risk of more than 50 basis points of over the remainder of 2025. For USD/JPY and EUR/USD traders, that puts increased focus on Tuesday’s US report and commentary from FOMC officials in the days ahead.
Fed Pricing Drives G10 FX
While there are question marks over how long this dynamic will last, it’s clear that Fed rate cut pricing for the remainder of 2025 continues to dominate G10 FX movements. This is evident in the chart below showing rolling five-day…
