USD flows: USD soft in early trade

The USD has weakened in early European trading, falling back across the board helped by continuing expectations of easier US policy, with a Fed rate cut in September now almost fully priced in. This has also supported equity markets, and this also tends to be negative for the USD against riskier currencies. When higher equities are due mainly to lower US yields, this also extends to USD weakness against the dafter havens. But with a September Fed cut now fully priced in, the downside for the USD should be quite restricted from here.