Mitsubishi UFJ: Even if the Federal Reserve signals a rate cut, the dollar's decline may still be limited.

Gate News bot reports that Mitsubishi UFJ analyst Derek Halpenny stated in a report that Federal Reserve Chairman Powell may signal future rate cuts at Wednesday’s meeting, but any fall in the dollar may be limited against the backdrop of the conflict between Israel and Iran.

He said that considering the employment market and inflation data are weaker than expected, the overall tone of Powell’s speech may be interpreted as “dovish”, implying a rate cut. This could lead to a slight increase in expectations for a rate cut after September. However, the willingness to sell the dollar may temporarily weaken before the outlook on the conflict between Israel and Iran becomes clearer.

Source: Jinshi

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