Maybank looks ahead to US CPI: inflation in line with expectations will reduce bets on the Federal Reserve's aggressive rate cuts
Maybank analysts said in a foreign exchange research and strategy report that the market generally expects the US core CPI to decline slightly to 3.2% in July from 3.3% in June.
Inflation data in line with this expectation would be the best for the market. While such data could further reduce bets on aggressive rate cuts by the Federal Reserve and could send the dollar higher, an improvement in risk sentiment could slow the dollar's gains.