Mesirow: Expectations that the Fed will soon cut rates along with other major central banks push the dollar lower

Odaily Odaily News: Uto Shinohara, managing director and senior investment strategist at Mesirow, said that Powell validated the market's expectations for a rate cut in September, while continuing to emphasize data dependence and future economic prospects. Expectations that the Federal Reserve will soon cut interest rates along with other major central banks pushed the dollar lower. Although the dollar is under pressure, the implied expectations for rate cuts have not changed significantly: expectations for the September meeting are still around 30 basis points, and expectations for total rate cuts this year have only increased from around 95 basis points to the current 100 basis points. As inflation is on the path to achieving its goals, employment-related risks will play a greater role after the non-farm data has been significantly revised down, and the Fed's response to employment data will continue to influence the dollar's trend. (Jinshi)