According to Odaily, Monex Europe has indicated that the US dollar could strengthen if upcoming retail sales data leads the market to temper its expectations for aggressive rate cuts by the Federal Reserve. Monex analysts, in a recent report, suggested that the data to be released later might show a moderate increase in consumer activity for July, reinforcing the notion that the US economy continues to expand.

The report stated, 'If we are correct, the market should continue to align with our view on the Federal Reserve's easing policy, and we expect this dynamic to be favorable for the dollar.' Monex anticipates that the Federal Reserve will implement 25 basis point rate cuts in September, November, and December, which is slightly less aggressive than current market expectations.