Investors have cemented Fed easing expectations despite some hotter-than-expected US data.

We suspect a market reluctant to price out rate cuts will need strong words from the Fed – perhaps Fed Chief Jerome Powell himself – to reconnect rate expectations with data.

We think the Dollar is more at risk of a rebound than a further correction from these levels, although the chances of another rangebound trading week in FX (DXY still hovering in the 102/103 region) are high.