The US dollar’s fall to new multi-month lows against its peers coupled with the break below key support levels is a sign of renewed bearishness in the greenback.The outsized move in USD following the jobs report and CPI data suggest the market is convinced that the US Federal Reserve is near the end of its tightening cycle. Rate futures are pricing in a nearly 100% chance of one last 25-basis point hike at the July 25-26 meeting, with rate cuts starting in early 2024, according to the CME FedWatch tool. The market’s expectations contrast with the Fed’s projected two rate hikes before the year-end and no rate cuts until 2025.Given that inflation continues to be well above the Fed’s target with the disinflation process slow at best, and the labour market remains resilient, a rate hike at the July meeting could yet go through. Beyond that, it remains highly uncertain, both in terms of whether rate hikes happen and by how much. Daily FX