According to ChainCatcher, Kit Juckes, chief global foreign exchange strategist at Societe Generale, said in a report that the money market's current expectations for a U.S. interest rate cut in 2024 seem to be a bit over the top, and a larger 50 basis point cut in September is still unlikely.

Refinitiv data shows that the U.S. money market currently expects a 103 basis point rate cut in 2024, suggesting that the Fed will cut interest rates by 50 basis points at least once in the remaining three meetings this year. Juckes said: "Unless the economy slows down significantly, the front end of the interest rate curve in the next six months has already reflected too much of a rate cut." He said there is great uncertainty about the extent of the economic slowdown. (Jinshi)