International Forex News - August 17

Trump: I Have Asked for a Sharp Reduction in the Scale of Joint Military Drills with South Korea

On August 17, U.S. President Donald Trump said he was unhappy that the United States had agreed long ago to conduct joint military exercises with South Korea. These drills are not only costly, but most of the expenses are borne by the United States, “as always.” Since it is now too late to cancel the joint exercises, Trump said he has instructed Secretary of War Hegseth to sharply reduce their scale. He also mentioned something that appeared unrelated, saying that he had recently asked South Korea’s president whether the country would be willing to join U.S. denuclearization action against Iran, and that South Korea replied: “No, thank you.”

Probability of the Fed Keeping Rates Unchanged in September Stands at 66.9%

On August 17, according to CME FedWatch: the probability that the Federal Reserve will keep interest rates unchanged in September is 66.9%, while the probability of a cumulative 25 bp rate hike is 33.1%. By October, the probability that the Fed will keep rates unchanged is 53.6%, the probability of a cumulative 25 bp rate hike is 39.8%, and the probability of a cumulative 50 bp rate hike is 6.6%.