FX Update- USD
The USD has taken back most of this morning’s losses and is now flat to lower across the board relative to the major currencies with the USD Index marginally lower at 73.264.
The USD rebound appears to be guided by extended selling in energies, and perhaps the surge in the Chicago PMI Prices Paid Index published earlier this morning.
Lower bond yields and weakness in equities combined with this morning’s lower than expected data will continue to complicate interest in greenback this afternoon and should yield range bound trade into the close ahead of tomorrow’s employment report.
Fed fund futures have given back some of their gains but are still higher on the day, and now reflect a 31% chance of a rate hike in September from 36% yesterday.