Fed cut probability for October
The chance of a rate cut currently at 68.7%, which is well down from a figure of 90% last week. The CPI data will be important on Thursday for the US and any upticks in inflation will reduce this rate cut probability further. A miss in CPI and the Fed will be seen as more likely to move to cut rates. Also, we have Fed's speakers in the mix too. So, we are back to watching data and Fed speakers to get a handle on the next direction of the USD.
