According to Odaily Planet Daily, Monex Europe said in a report that the US dollar may recover from its current decline and benefit from safe-haven fund flows due to excessive expectations of US interest rate cuts.

Analysts noted that recent weak U.S. data had led the market to raise expectations for rate cuts for the rest of 2024 to five from three.

They believe that forecast is too aggressive given there is no risk of a recession and data last week showed no signs of a slowdown.

Even if the U.S. economy were to enter a recession, the dollar could rebound on safe-haven demand.