Retail sales data fell short of expectations, and traders completely abandoned expectations of interest rate hikes this year. The market now fully priced interest rate hikes will be implemented in January next year, which is quite different from the situation a few weeks ago — at the time, the market increasingly anticipated two 25 basis point rate hikes by March 2027.

Retail sales data fell short of expectations, and traders completely abandoned expectations of interest rate hikes this year. The market now fully priced interest rate hikes will be implemented in January next year, which is quite different from the situation a few weeks ago — at the time, the market increasingly anticipated two 25 basis point rate hikes by March 2027.