U.S. June CPI Cools to 3.5% YoY, Down 0.4% MoM; Market Scales Back Rate Hike Bets to One

According to market reports, the U.S. Labor Department released June CPI data showing headline inflation at 3.5% year-over-year and down 0.4% month-over-month, while core CPI rose 0% month-over-month, both below market expectations. Following the data release, market expectations for a Federal Reserve rate hike in July receded sharply, with forecasts for total rate hikes this year scaling back to around one. The U.S. dollar index weakened on the report, triggering a significant intraday rebound in precious metals. However, gains remained capped amid persistent rate expectations and economic resilience concerns.
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