US Housing Stalls, Boosting Rate-Cut Bets and Dollar Weakness

The US Housing Price Index remained flat in June, recording a 0% month-over-month gain. This outcome falls short of market expectations, which forecasted a 0.2% rise.

As a result, there is less upward pressure on housing valuations, and the trend suggests a cooling down of the property market.

The Federal Reserve may face reduced pressure to keep interest rates elevated in response to this development.

With falling yields expected, traders are recommended to go long on short-term Treasury futures such as 2-Year and 5-Year notes.