Euro Surges as Waller's Comments Cool Fed Rate-Hike Bets
The Euro has gained against the US Dollar as Waller tempered Fed rate-hike bets. According to FXStreet, EUR/USD is trading around 1.1622, up roughly 0.30% on the day. This comes after a sharp rally in the Japanese Yen and softer United States labour-market data weighed on the US Dollar.
The US Dollar Index (DXY) has reached a one-week low of 99.00, down from its highest level since August 14. The benchmark 10-year US Treasury yield has also fallen for the second consecutive day to around 4.74%, retreating from 4.81%.
US Federal Reserve Governor Christopher Waller's comments have prompted traders to scale back bets on a rate hike this month. He stated that he is 'finally seeing some signs of disinflation in recent data' and would support keeping interest rates unchanged if the August data confirm recent progress.