US Dollar Unchanged After Inflation Numbers Meet Expectations
The US dollar remained largely unchanged after the inflation numbers for July were released. The annual headline inflation rate decreased to 3.4%, which met expectations.
The lower increase in fuel prices compared to June was somewhat unexpected, but other key components such as rents and food showed little change from the previous month.
With both core and non-core inflation releases meeting forecasts, market volatility decreased. Additionally, the release occurred during a typically less active period in August, contributing to the relatively calm response.
The Fed's potential rate hike plans have shifted as a result of the weaker-than-expected NFP (Non-Farm Payroll) numbers and lower inflation for July. Currently, around 64% of participants expect another hold on interest rates by the Fed in September.