Analysis: If non-farm data is strong enough, rate cut bets may be reduced

Odaily News Swissquote analyst Ipek Ozkardeskaya said in a report that if the U.S. non-farm payrolls data released on Friday is stronger than expected, the dollar may rise because it will weaken the Federal Reserve's expectations of at least 50 basis points of interest rate cuts this year. She said this may support the Fed's single interest rate cut of no more than 25 basis points in the remaining three meetings this year. She said: "Sufficiently strong data may even increase people's expectations that the Fed will only cut interest rates twice this year, for a total of 50 basis points." She said that rate cut bets are more likely to shrink rather than increase. (Jinshi)