Institution: Even if inflation data is lower than expected, the downside of the US dollar is limited.

According to a report by Jane Foley, forex strategist at Rabobank, even if the US inflation data released on Wednesday is lower than expected, there is limited downside potential for the US dollar. She said that weaker-than-expected data would increase bets on further rate cuts by the Federal Reserve. Although the US dollar may initially weaken, the Fed's further accommodative policy is already priced in. This suggests that any fluctuations should be limited. She stated, 'In fact, considering the constant news about tariffs since January 20th (President Trump's inauguration), we expect little concession (from the US dollar).' Rabobank expects the Federal Reserve to cut rates again, but President Trump's 'inflation policy' indicates that the window of opportunity for further rate cuts may close quickly.