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Standard Chartered expects the Fed to cut interest rates in June, which will push the dollar down

Standard Chartered expects the Fed to cut interest rates in June, which will push the dollar down

CointimeCointime2024/04/02 03:42
By:Cointime

Standard Chartered has stated that if prices or economic activity cool sufficiently, the Federal Reserve may be more inclined to ease monetary policy in the second quarter, which will push the dollar to "slightly soften" from mid-year. Analysts wrote in the report that our base scenario assumes that the Federal Reserve will cut interest rates ahead of or alongside other central banks, which is detrimental to the dollar because the improvement in risk appetite and liquidity conditions will lead to dollar selling. The optimistic sentiment of risk assets is not favorable for the dollar, but if the difference between the Federal Reserve's interest rate and other central banks' interest rates can be maintained, then the dollar "may be moderately weak rather than collapsing."

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