Barclays: The Fed is expected to make three 25 basis point rate cuts this year
PANews reported on September 17 that according to a report by Gold Ten, Barclays foreign exchange strategist Skylar Montgomery Koning said that the US dollar is about to rebound, as traders have overestimated the extent of the Federal Reserve's rate cuts and underestimated the retail sales data released on Tuesday. She predicted that stronger-than-expected retail sales will change market bets, leading the market to expect a smaller rate cut, thereby boosting the US dollar. Currently, there are only two days left before the Federal Reserve's interest rate decision, and the uncertainty of traders about this decision is the highest since 2007, and this consumer report is one of the last pieces of information before the announcement of the interest rate. Barclays expects the Federal Reserve to make three 25-basis-point rate cuts this year, as the US economy remains strong. Montgomery Koning said the market tends to overreact to rate cut expectations. She said: "In those soft landing periods, if you look at the historical data, the market always overestimates the extent of the Federal Reserve's rate cuts, and when the expectations turn, the dollar will rebound."
