Deutsche Bank: US PCE data leads market to reduce bets on Fed rate hikes

Golden Ten Data reported on June 26 that as the market has reduced expectations for a rate hike by the Federal Reserve, the US dollar has slightly weakened. Data released on Thursday showed that the Personal Consumption Expenditures (PCE) Price Index rose by 0.4% month-on-month, below economists' expectations of 0.5%. Analysts at Deutsche Bank stated in a report that this has "tempered the narrative of Fed rate hikes that has been gaining momentum in recent weeks." They noted that although Federal Reserve officials remain cautious about the inflation outlook, there is increasing speculation that the Fed may not need to raise rates at all this year.