Since the start of July, the US Dollar index has weakened by almost 2%. This decline has primarily come in the 16 days since the US Bureau of Labor Statistics published the country’s latest annual inflation figure, which stood at 3% for June. With inflation now approaching target levels, markets are expecting the Federal Reserve to conclude its rate-hiking cycle in the near future, with the possibility of a final 25 basis point raise in July. As the USD has weakened in recent weeks, ChAI’s models have interpreted the relative strengthening…
