USD weakness continues

There is still no sign of anything on the EUR side that could contribute to this movement, Commerzbank’s Head of FX and Commodity Research Ulrich Leuchtmann notes. A USD-negative view is justified “The market considers a large 50-basis-point move by the Fed at tomorrow's meeting to be increasingly likely , and that has taken its toll on the USD. A large move does not necessarily imply that the rate-cut cycle will end lower than the market had previously expected.

And we showed that the US labor market has cooled, but continues to perform almost as well as in the goldilocks year of 2019. Sure, there are risks. The labor market could cool down rapidly, and of course inflation could plummet.

But of course, things could also turn out differently.” “A 50-basis-point move would suggest that the Fed's reactionfunctionis more negative for USD than could be assumed just recently. We have summarized this news so that you can read it quickly.

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