Yuxin Investment Research Institute strategists said the US-Iran temporary peace
deal has reduced but not eliminated market expectations of Fed rate hikes, which
has capped the dollar's fall. LSEG data show a 68% probability of a 25bp hike in
December and the market fully prices action by March next year. The strategists
said the ongoing possibility of hikes should keep the dollar's decline less
pronounced versus other assets, notably oil. The agreement is temporary and
opens a new 60-day negotiation on Iran's nuclear program.
