Dollar stays near multimonth lows as September Fed hike odds fall to 35% and Iran war fears rise
AI Market Summary
The dollar is under pressure as softer U.S. data pushes down near-term Fed hike odds (September seen at 35% vs 52.2% a week ago), supporting EUR and GBP. However, risk sentiment remains fragile: Brent is elevated amid Iran escalation risks and disruption fears around the Strait of Hormuz, while global long-end yields stay high on fiscal and supply concerns. Near-term FX volatility may rise.
Impact level
● High
Affected assets
NCSIDXY2USD/USDT+0.18%
AI Insight · NCSIDXY2USD/USDTAI Insight
● Neutral
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The euro and sterling held near recent highs as markets sharply pared back expectations for a Federal Reserve rate increase. September hike odds fell to 35% from 52.2% a week earlier, according to the CME FedWatch tool. Meanwhile, worries about war involving Iran helped push Brent crude to its highest level since late July. Analysts said persistent inflation pressures are limiting the Fed’s room to maneuver.
