Markets Await Inflation Data for Rate Cut Clues<\/strong> Following last week\u2019s weak nonfarm payrolls report, markets are fully pricing in a 25-basis-point cut and assigning a slim 5% chance to a larger 50 bps move, CME FedWatch showed. Traders also anticipate around 66 bps of easing through the rest of 2025.<\/p>\n\n\n\n Producer price data is due later Wednesday, followed by consumer price inflation figures on Thursday, which are expected to provide key insight into how much Trump\u2019s recent tariffs have filtered into broader prices.<\/p>\n\n\n\n Dollar Holds Ground, Euro and Sterling Flat<\/strong> The Australian dollar<\/strong> rose 0.3% to $0.66065, close to a seven-week high touched on Tuesday, while the greenback has lost nearly 10% year-to-date amid erratic U.S. trade policy and rising expectations of lower interest rates.<\/p>\n\n\n\n Fed Independence Battle Adds Uncertainty<\/strong> Meanwhile, data on Tuesday showed the U.S. economy created 911,000 fewer jobs between March 2023 and March 2024<\/strong> than previously estimated, suggesting the labor market had been weakening even before the latest wave of tariffs.<\/p>\n\n\n\n Geopolitical Tensions in Focus<\/strong> Investors are watching political developments abroad as well, with France preparing to appoint its fifth prime minister in under two years after Fran\u00e7ois Bayrou\u2019s ouster, and Japan navigating leadership uncertainty following Shigeru Ishiba\u2019s resignation as prime minister.<\/p>\n\n\n\n Elsewhere, Indonesia\u2019s rupiah stabilized after tumbling 1% on Tuesday following the surprise removal of Finance Minister Sri Mulyani Indrawati, a move that rattled investors in Southeast Asia\u2019s biggest economy.<\/p>\n","protected":false},"excerpt":{"rendered":" Markets Await Inflation Data for Rate Cut CluesThe U.S. dollar traded largely steady on Wednesday as investors awaited a string of inflation reports that could determine the size of the Federal Reserve\u2019s expected interest rate cut at its September 16\u201317 meeting. Following last week\u2019s weak nonfarm payrolls report, markets are fully pricing in a 25-basis-point …<\/p>\n","protected":false},"author":9,"featured_media":112137,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[38,6827,49,37,36],"tags":[],"class_list":["post-118646","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-commodities-news","category-daily-economic-reports","category-economic-reports","category-forex-markets","category-market-updates"],"_links":{"self":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/118646","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/comments?post=118646"}],"version-history":[{"count":2,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/118646\/revisions"}],"predecessor-version":[{"id":118650,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/118646\/revisions\/118650"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media\/112137"}],"wp:attachment":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media?parent=118646"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/categories?post=118646"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/tags?post=118646"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
The U.S. dollar traded largely steady on Wednesday as investors awaited a string of inflation reports that could determine the size of the Federal Reserve\u2019s expected interest rate cut at its September 16\u201317 meeting.<\/p>\n\n\n\n
In Asian trade, the dollar index<\/strong> was unchanged at 97.834 after gaining 0.3% on Tuesday. The euro hovered at $1.17115 and sterling at $1.3534. The yen was flat at 147.41 per dollar.<\/p>\n\n\n\n
Investor sentiment was also tempered by political drama after a U.S. court temporarily blocked President Donald Trump\u2019s attempt to fire Federal Reserve Governor Lisa Cook. The unprecedented legal fight is expected to head to the Supreme Court, fueling worries over the central bank\u2019s independence.<\/p>\n\n\n\n
Markets were also on edge after Poland scrambled NATO air defenses to shoot down drones following a Russian strike on western Ukraine.<\/p>\n\n\n\n