Major currencies are keeping in narrower ranges for now as we see markets pause for a bit of a rethink, with the bond market saying one thing and that saw Wall Street checked back after an early rally in trading yesterday.
As things stand, a 50 bps rate hike by the Fed next month is all but assured but the question now is, will the door be shut for a 75 bps rate hike? Unfortunately, we may not get any certainty until we run it all back on the same set of data points in one month’s time. The fact of the matter is, this is a market that is looking for clues from data points for more signals on inflation, the economic outlook, and how central banks intend to work with that to proceed with their tightening plans.