“The US Federal Reserve will raise its benchmark overnight interest rate by 25 basis points (bps) to the 5.25%-5.50% range on July 26,” per all the 106 economists polled by Reuters in its July 13-18 survey.

The sentiment poll also mentioned that the majority of respondents, 87 from 106, expect July’s Fed rate hike will be the last increase of the current tightening cycle.

It’s worth noting, however, that around 55% of the respondents, versus 78% prior, anticipated at least one rate cut by the end of March 2024, suggesting higher rates for longer.

“A slight majority of economists who answered an additional question, 14 of 23, said wage inflation would be the most sticky component of core inflation,” the survey results stated additionally.

US Dollar recovery gains traction

While the latest Reuters poll suggest more downside for the US Dollar, the same appeared to have already priced in as the US Dollar Index (DXY) dropped to a fresh 15-month low on early Tuesday before bouncing off the 99.56 level, around 99.95 by Wednesday’s Asian session.

Also read: Forex Today: US Retail Sales failed to hold back the US Dollar, eyes on NZ CPI