In response to the higher-than-expected revision of the US GDP in the second quarter, US bond yields have risen and dollar-buying has spread. Expectations for a 75bp rate hike at the next FOMC in the short-term money market rose to 62.5%. 50bp is down to 37.5%. The upward revision of the GDP deflator from the preliminary estimate of +8.7% to the revised figure of +8.9% is seen as accelerating inflation. Powell’s speech tomorrow is approaching, and it seems that speculations about aggressive interest rate hikes are increasing.
USD buying is again dominant, but looking at the trend so far, it is unlikely that the price will continue to rise, so let’s wait and see.
