"Societe Generale warns: The Fed is about to cut interest rates, what will be the fate of the US dollar?"
Analysts at Societe Generale dropped a bombshell: The Fed may press the interest rate cut button in September, but don't worry, the US dollar will not plummet. Foreign exchange strategists point out that although the strong rebound of the US dollar in 2021-2022 provides room for a possible decline, unless the US economy slows down far more than expected, interest rates are unlikely to fall back to pre-epidemic levels.
Expectations of interest rate cuts:
The September interest rate cut is imminent, and the market is holding its breath.
US dollar stability:
Even if interest rates are cut, the depreciation of the US dollar will be limited, showing its resilience as a safe-haven currency.
Yen under pressure:
The biggest fluctuation may be in the US dollar-yen exchange rate, which is expected to fall from 156.197 to 140 by early 2025.
What do you think of Societe Generale's analysis?