According to Jinshi, 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. Lee Hardman, an analyst at the bank, noted Wednesday's weaker-than-expected ISM service sector report and ADP private employment data showing slower job growth, saying: "Overall, these developments give us more confidence that U.S. inflation and growth 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 was a key assumption in the bank's expectation of a weaker dollar.
