Commerzbank: Last Wednesday’s June Inflation Data May just be a Harbinger of Further Dollar Weakness

Antje Praefcke, foreign exchange analyst at Commerzbank, said Wednesday’s inflation data could be just a harbinger of further dollar weakness.
If the next inflation data unexpectedly falls, and economic data becomes increasingly clear that past rate hikes are having a dampening effect on the U.S. economy, the market may become increasingly convinced that key interest rates won‘t stay high for long, while The odds are growing that the Fed will cut interest rates before the end of the year.
This will cause the dollar to weaken further.