Swissquote Bank analysts: Strong non-farm data may push up the dollar and weaken expectations of a Fed rate cut

According to BlockBeats, Swissquote analyst Ipek Ozkardeskaya said in a report that if the U.S. non-farm payrolls data released on Friday is stronger than expected, the dollar may rise as it will weaken expectations that the Federal Reserve will cut interest rates by at least 50 basis points this year.

That could support the Fed cutting rates by no more than 25 basis points at each of its three remaining meetings this year, she said. “Sufficiently strong data could even raise expectations that the Fed will cut rates just twice this year, for a total of 50 basis points,” she said, adding that rate cut bets were more likely to shrink than grow.