TechFlow news, September 12 — According to Jinshi Data, TD Securities strategists said in a report that if the Fed cuts interest rates by 25 basis points next week but remains cautious about further rate cuts, the U.S. dollar should rise.
They noted that as concerns over economic growth become critical, market expectations point toward consecutive rate cuts. However, the Fed may dampen these expectations by emphasizing potential inflation risks. "Powell could signal that the Fed is not on a preset path of rate cuts and will continue monitoring incoming data to assess risks." This would boost the dollar. Still, they said, the dollar is expected to decline in the long term, and any rebound would be a good opportunity to sell.
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