Markets The new statement featured some important changes compared to the June one, which are seen as paving the way towards a first, September rate cut. It noted that there was some further progress of inflation, which they now label as “somewhat” elevated, while striking a less upbeat tone on the labour market .
The expected terminal rate this cycle also edged slightly lower . Wall Street rose up to 2.6% . The US dollar traded remarkably resilient given the risk on and yield drop. EUR/USD eked out a small gain to 1.0826 after trading within a narrow 1.08/1.085 trading range all day. USD/JPY finished around 150 on both a stronger yen and weakish USD. The pair extended losses in Asian dealings this morning by dropping as low as 148.5 before snapping back intraday.