According to Odaily, Monex Europe has indicated in a recent report that the US dollar might recover from its current significant decline. This potential rebound is attributed to the possibility that expectations for US interest rate cuts may be overly optimistic. Analysts have noted that recent weak US economic data has led the market to increase the anticipated rate cuts for the remainder of 2024 from three to five. However, without the risk of an economic recession, this expectation appears to be overly aggressive, as last week's data did not show signs of an economic slowdown.

Furthermore, analysts suggest that even if the US economy were to enter a recession, the dollar could still benefit from safe-haven flows. This indicates that the demand for the dollar might increase as investors seek stability in uncertain economic conditions. The report underscores the complexity of predicting currency movements and highlights the potential for the dollar to strengthen despite current market trends.