The US Dollar (USD) is trading on the defensive, underperforming the most against JPY. The US yield curve inverted slightly, and US equity futures are higher, BBH FX analysts note.  

The US yield curve is slightly inverted

“USD is trading on the defensive, underperforming the most against JPY. The US yield curve inverted slightly, and US equity futures are higher.” 

“USD will likely remain under short-term downside pressure against major currencies as Fed funds rate expectations continue to diverge from the FOMC’s Dot Plot.”

“Fed funds futures are pricing-in over 60 bp of cuts by December 2024 while the FOMC has only 25 bp of cut pencilled-in this year.”