In the latest round of market dynamics, there has been a subtle adjustment in expectations regarding potential actions by the Federal Reserve (Fed) to cut interest rates. According to analysis by Adam Button, a forex live analyst, the market's pricing for a Fed rate cut has been reduced from 106 basis points at the time of the CPI data release to 103 basis points. Although this adjustment may seem minor, it reflects a subtle shift in market sentiment. Button explains that this movement indicates a more optimistic outlook on future economic conditions, suggesting that the market anticipates more downside risks. It is worth noting, however, that the unrounded actual inflation figures are more favorable compared to the overall data, which further reinforces the market's hawkish response.