Currency traders turned bearish on the dollar as Federal-funds futures showed a 40% chance the Fed would lift rates this year, down from 50% earlier this week, according to CME Group data.
“Two weeks ago, we had GDP and we thought ‘lights out’ – and then we had the payrolls, and the lights turned back on again, and now it’s lights out again,” Steven Englander, global head of Group-of-10 currency strategy at Citigroup Inc., told Bloomberg.
Looking ahead, traders will have to wait for Fed Chair Janet Yellen’s comments later this month at the meeting of global policy makers in Jackson Hole, Wyoming to find any more guidance on the central bank’s outlook. The Fed will release its next policy decision on September 21.
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PowerShares DB U.S. Dollar Index Bullish Fund