Analyst: Any signs of economic cooling could strengthen expectations for further Fed rate cuts next year

According to Odaily, XTB analyst Hani Abuagla stated in a report that if US third-quarter economic growth data falls short of expectations, the US dollar will be extremely vulnerable. Any signs of economic cooling could strengthen expectations of further interest rate cuts by the Federal Reserve next year, thereby lowering yields and further weakening the dollar. Reduced year-end liquidity and recent changes in global monetary policy may exacerbate this sensitivity. In particular, the recent rate hike by the Bank of Japan may encourage capital inflows into the yen, and if US economic data disappoints, it will further suppress the dollar. (Golden Ten Data)