London, Tuesday, 4 October 2022
Following the release of new ISM Manufacturing PMI statistics that revealed an unexpected slowdown in US industrial activity, the dollar index declined for a third day to close to two-week lows of 111.1 on Tuesday.
As opposed to the 165bps increase projected last month, money markets now anticipate the central bank to hike rates by 125bps by March. Officials at the Fed are still pushing for more rate increases.
John Williams, president of the New York Fed Bank, stated on Monday that while there are indications that inflation is slowing, the underlying price pressures are still high, supporting the need for additional monetary tightening.
(Report by: The Decision Maker - Finance editors)