Expectations for a Federal Reserve rate increase in September have risen above 60%, driven by a robust US jobs report, according to BNY Markets. This comes despite more cautious remarks from Federal Reserve Governor Christopher Waller, reflecting increased market anticipation ahead of key inflation data due on September 16.
Meanwhile, Brent Oil's climb toward $100 per barrel is placing pressure on stocks and bonds while providing modest support to the US Dollar, Brown Brothers Harriman noted. Gold prices have stabilized around USD 4,400 per ounce as markets await the upcoming US inflation figures, which Commerzbank says will be crucial for the Fed's decision.
The Euro remains relatively strong, supported by resilient second-quarter growth in the Eurozone and its ability to withstand geopolitical and commodity-related shocks, according to ING. For Japanese investors, these developments underscore the importance of closely monitoring US monetary policy and commodity price trends, which could influence FX and equity markets in Japan.