Silence speaks louder than words
Clarida's speech was the last opportunity for the Fed to push back against a cut that's 84% priced into the market. He didn't.
Of course he offered the token 'meeting-by-meeting' phrase but that isn't swaying anyone. He also highlighted low inflation which is growing into the Fed's go-to reasoning for cutting rates.
As a result, the market is shifting to price in a certainty of a cut and that's weighing on the US dollar. It's lifted EUR/USD to the best levels of the day at 1.1158. The late-August high of 1.1164 is now within striking distance:
