- The dollar fell as speculators bet inflation is close to its peak even as policymakers increase their hawkish language, and US futures extended their rally.
- The S&P 500 and Nasdaq 100 contracts increased, indicating that US equities may extend last week's gains. As all G10 peers increased save for the yen, a barometer of the dollar sank for a second day, on course for its greatest two-day dip in almost three months. Treasury yields dipped a little bit. Industrial metals and crude oil rose as concerns about demand were offset by the decline of the dollar.
- Investor attention is on the August US inflation data, which is due on Tuesday. While the headline measure is anticipated to slow to an 8% annual pace, the core measure, which excludes food and energy, is anticipated to accelerate. Following two 75-basis-point hikes, markets almost entirely anticipate another jumbo-sized Fed raise next week, and forward guidance provided by fed officials in the lead-up to the decision meeting has confirmed that view.
- Fed Governor Christopher Waller indicated his support for a 75 basis-point hike by saying he supported "another major" increase in interest rates when the central bank meets later this month. President of the Fed Bank of St. Louis, James Bullard, stated that he was leaning "more strongly" in favor of a third consecutive boost of that magnitude, while President of the Fed Bank of Kansas City, Esther George, stated that officials have a "clear-cut" case for continuing to withdraw monetary support.
