Odaily Planet Daily News According to Robert Mialich, forex strategist at Yuexin Bank, the Fed may cut interest rates by 25 basis points next week instead of 50 basis points, which would be beneficial for the US dollar but have minimal impact. Mialich said that a 25 basis point rate cut means the Fed does not intend to significantly loosen its policy, which may prevent the dollar from falling further, but is unlikely to trigger a strong recovery. "The euro against the dollar may continue to trade above 1.10," he said. However, if the Fed cuts interest rates by 50 basis points, the currency pair may break through 1.12, as this would indicate that the US economy is worse than the data shows. (FXStreet)
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Yuexin Bank: If the Fed chooses to cut interest rates by 25 basis points, the dollar may benefit slightly.
Odaily Planet Daily News According to Robert Mialich, forex strategist at Yuexin Bank, the Fed may cut interest rates by 25 basis points next week instead of 50 basis points, which would be beneficial for the US dollar but have minimal impact. Mialich said that a 25 basis point rate cut means the Fed does not intend to significantly loosen its policy, which may prevent the dollar from falling further, but is unlikely to trigger a strong recovery. "The euro against the dollar may continue to trade above 1.10," he said. However, if the Fed cuts interest rates by 50 basis points, the currency pair may break through 1.12, as this would indicate that the US economy is worse than the data shows. (FXStreet)