Traders are increasingly betting on a Federal Reserve rate cut by December, with approximately 20 basis points of easing anticipated by the end of the year and a 79% probability of a cut at the next meeting. This shift in expectations comes as the Reserve Bank of New Zealand (RBNZ) indicates the end of its easing cycle, bolstering the New Zealand dollar. In contrast, the Bank of Japan (BoJ) remains an outlier, with markets pricing in about 8 basis points of hikes by year-end and 45 basis points by the end of 2026. Key upcoming data releases, including the FOMC, NFP, and CPI, are expected to significantly influence USD rate volatility and foreign exchange market directions.