Dollar dips after SLOOS signals tightening lending standards across all categories

• 4.8% of Large & Mid-market firms in July say conditions tightened considerably, up from 3.2% in April.
• Commercial and Industrial loans for medium and large firms saw an increase in tightening terms (50.8% vs 46% prior)
• Fed rate cut odds for the December 13th meeting remained around 17.5%

The Fed July Senior Loan Officer Survey (SLOOS) on Bank Lending Practices highlighted a that tightening lending standards occurred across all categories.  The impact from the Fed's tightening cycle is clearly impacting the economy as weaker demand was noticeable for commercial and industrial loans, and CRE loans.

Wall Street was not really surprised as the lag from Fed tightening is supposed to take several months before business notice significant tightening of credit conditions.  The dollar softened following the release as the survey supports the narrative that the economy will steadily and weaken and that should support rate cut bets for early next year.