A worse-than-expected US inflation reading for August crushed demand for risky assets which flourished in recent days. Capital is once again fleeing to the US dollar, which is trading at the edge of parity against the euro.
EURUSD is once again struggling to stay above parity level. Source: xStation 5
The swap market is currently pricing a 24% chance of a 100 basis point hike at the next FOMC meeting on 21st September. Source: Bloomberg
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