Monex Europe Sees Further Dollar Downside After U.S. Inflation Cools More Than Expected

The U.S. dollar faced the risk of further declines after data showed U.S. inflation slowed more than expected in June. According to Jin10, Monex Europe analyst Nick Rees said in a report that the larger-than-expected cooling in June inflation increased downside risks for the dollar. Rees said Monex continued to expect the Federal Reserve to keep interest rates unchanged in 2026, provided current Middle East tensions ease and oil prices remain under control. He added that markets still expected a rate hike before year-end, and that expectation could weigh on the dollar.