DBS Bank: The Federal Reserve should open the door to rate cuts at the July FOMC meeting.
According to ChainCatcher news, Philip Wee, a senior foreign exchange strategist at DBS Bank, pointed out that although the futures market believes the possibility of a rate cut by the Federal Reserve in September is over 100%, the twists and turns of the US presidential election and the unwinding of the yen carry trade have made the outlook for the US dollar unclear. Furthermore, against the backdrop of the tech stock selloff, the yen and the Swiss franc have become safe-haven currencies. At the July FOMC meeting, the Federal Reserve should open the door to a rate cut, but avoid supporting the market's bet on a September rate cut. After the release of the US unemployment rate data on August 2 and the CPI data on August 14, the Federal Reserve may provide a timeline at the Jackson Hole symposium.
