The release of the US Consumer Price Index report yesterday on retracements is moving in the right direction for the Fed, albeit slowly, and this makes the bets of a September rate cut firmly on the table, as traders are now also pricing in another rate cut in December.
With the dollar falling yesterday, Treasury bond yields also fell significantly and this will be a key point to monitor the dollar's movement in the coming period, as the 100-day moving average is at 4.26%, and ten-year yields are now trading near the levels of 4.33%, and I think it is a crucial stage for bond sellers if they want to take a position next week, especially since the dollar index is currently trading at the 100-day moving average.
As it is possible to see some rebounds, even if they are corrective, while waiting for some US data today, the most important of which will be the rates of complaints about unemployment and positive expectations of its decline from 231 thousand applications to only 219 thousand.
