UniCredit: If the Fed chooses to cut interest rates by 25 basis points, the dollar may benefit slightly

Odaily Odaily News: Robert Mialich, a foreign exchange strategist at UniCredit Bank, said that the Federal Reserve may cut interest rates by 25 basis points instead of 50 basis points next week, which will be beneficial to the US dollar, but the impact will be minimal. Mialich said that a 25 basis point rate cut means that the Federal Reserve does not intend to relax policy aggressively, which may prevent the US dollar from falling further, but is unlikely to trigger a strong recovery. "The euro will probably continue to trade above 1.10 against the US dollar," he said. However, if the Fed cuts interest rates by 50 basis points, the currency pair may break through 1.12, as this will indicate that the US economy is worse than the data shows. (Jinshi)