Reviewing the US inflation figures, Mahmoud Alkudsi, senior market analyst at ADSS, believes that they 'could give the Federal Reserve greater confidence to accelerate its pace of key rate cuts'.

As a reminder, the consumer price index rose in July by just 2.9% year-on-year in unadjusted terms, its lowest inflation rate since March 2021, and by 3.2% excluding energy and food products, the lowest since April 2021.

Inflation seems to be cooling from the high levels seen earlier in the year", notes Mahmoud Alkudsi, who also points to the weakness of the latest labor market data, the US central bank's other major concern.

With a rate cut of 50 basis points now more likely in September, the Fed could end the year with an interest rate cut of at least one percentage point", predicts the analyst.

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