DBS Bank: The July FOMC meeting of the Federal Reserve should open the door for rate cuts.
According to Odaily, Philip Wee, a senior foreign exchange strategist at DBS Bank, pointed out that although the futures market believes the probability of a rate cut by the Federal Reserve in September is over 100%, the twists and turns of the US presidential election and the unwinding of the yen carry trade have made the outlook for the US dollar unclear. Furthermore, against the backdrop of the tech stock selloff, the yen and the Swiss franc have become safe-haven currencies. At the FOMC meeting in July, the Federal Reserve should open the door to a rate cut, but avoid supporting the market's bet on a rate cut in September. After the release of the US unemployment rate data on August 2 and the CPI data on August 14, the Federal Reserve may provide a timeline at the Jackson Hole symposium.
