MUFG: The US dollar may fall next year, and weak economic data may boost expectations of interest rate cuts

Odaily Odaily News Mitsubishi UFJ Financial Group said in a report that the dollar looks set to fall next year as recent weaker U.S. economic data could strengthen market expectations for a rate cut by the Federal Reserve. Noting Wednesday's weaker-than-expected ISM services report and ADP private employment data showing slower job growth, Lee Hardman, an analyst at the bank, said: "Overall, these developments give us more confidence that inflation and growth in the United States will continue to slow, which will encourage the U.S. interest rate market to digest more rate cuts from the Federal Reserve over the coming year." He said this is a key assumption in the bank's expectation of a weaker dollar. (Jinshi)