• Fed rate futures for September are flip-flopping and price back in a chance for a 50 basis points interest-rate cut by the Federal Reserve.
• Former Fed member Dudley surprised markets by advocating for a bigger rate cut, while a couple of news articles suggest that a big rate cut is still in play.
• The US Dollar Index is crossing back to the lower band at 100.62 after another rejection. 

The US Dollar (USD) trades very soft again on Friday, set to close out the week with another loss. The decline comes on comments from former Federal Reserve Bank of New York President William Dudley, who mentioned there is still a possibility for a 50-basis-point interest-rate cut next week from the Fed. These comments came after two news articles published in The Wall Street Journal and the Financial Times suggested that a 50bps move is still on the cards after markets had largely ruled out such a big move.

Dudley pointed to a slowing US labor market, with risks to jobs greater than those from lingering inflation, supported by the comments from Fed Chairman Jerome Powell in his Jackson Hole speech that he did not want to see more weakness in the labor market, Reuters reports. 

On the economic data front, the US Import/Export prices are due, together with the University of Michigan Consumer Sentiment data. However, not much movement is expected unless the Michigan Consumer Sentiment number comes in well below estimates, a scenario that could support further the case for a 50-basis-point rate cut.