Analysis: Dollar more likely to react if data casts doubt on U.S. rate cut prospects

BlockBeats news, on July 24, Antje Praefcke, a foreign exchange analyst at Commerzbank, said in a report that the upcoming US economic data may consolidate the expectation that the Federal Reserve will enter a rapid interest rate cut cycle in the coming months, but this is unlikely to have a substantial impact on the US dollar.

The first interest rate cut in September is now almost fully digested by the market, and the market believes that there is a high probability of two more interest rate cuts before the end of the year.

If the US second quarter economic growth data released on Thursday and the personal consumption expenditure index released on Friday support these expectations, the reaction of the US dollar will be suppressed. Praefcke said: "However, if these data cast a shadow on market expectations, I expect (the US dollar) to have a more obvious trend." (Jinshi)