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Analyst: Powell's Caution Could Provide Short-Term Support for the Dollar
Summary: According to a report from FX strategist Jane Foley at Rabobank, if Federal Reserve Chairman Powell remains cautious about cutting interest rates in his upcoming speech, speculators may cover their short positions on the dollar in the short term. Both the market and Rabobank expect the Fed to cut rates in September, reflecting a weakening ...
According to a report from FX strategist Jane Foley at Rabobank, if Federal Reserve Chairman Powell remains cautious about cutting interest rates in his upcoming speech, speculators may cover their short positions on the dollar in the short term. Both the market and Rabobank expect the Fed to cut rates in September, reflecting a weakening labor market. However, Foley points out that Powell may still maintain a cautious stance on easing policy in his speech at the Jackson Hole central bank symposium this Friday. This stance could provide support for the dollar in the short term. Nevertheless, Rabobank still expects the EUR/USD to rise to 1.20 in the spring of next year, as the market anticipates more rate cuts in the future.
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Link: Analyst: Powell's Caution Could Provide Short-Term Support for the Dollar [Copy]
