DBS Bank: The Fed's July FOMC meeting should open the door to a rate cut

Odaily News Philip Wee, senior foreign exchange strategist at DBS Bank, pointed out that although the futures market believes that the probability of the Fed cutting interest rates in September is more than 100%, the twists and turns of the US presidential election and the unwinding of yen carry trades have made the outlook for the US dollar unclear. In addition, the yen and Swiss franc have become safe-haven currencies against the backdrop of a sell-off in technology stocks. At the July FOMC meeting, the Fed should leave the door open for a rate cut, but avoid supporting market bets on a September rate cut. After the release of the US unemployment rate data on August 2 and the CPI data on August 14, the Fed may give timing guidance at the Jackson Hole Symposium. (Jinshi)