If Powell Remains Cautious, the Dollar May Find Short-Term Support

According to ChainCatcher, citing Jinshi News, Jane Foley, a foreign exchange strategist at Rabobank, stated that if Federal Reserve Chair Jerome Powell remains cautious about rate cuts in his upcoming speech, speculators may unwind their previous short positions on the US dollar in the short term. Both the market and Rabobank expect the Fed to cut rates in September, reflecting signs of a weakening labor market. Foley noted that when Powell speaks at the Jackson Hole central bank symposium this Friday, he may still maintain a cautious stance on policy easing, which could provide short-term support for the US dollar.