According to Jinshi Data, ING analyst Francesco Pesole said in a report that the market needs to expect the Federal Reserve to cut interest rates further for the dollar to weaken. Without this, the dollar is more likely to strengthen in the short term.
Pesole pointed out that it is possible that U.S. money markets will start pricing in unchanged interest rates in November or December. The dollar could also appreciate due to uncertainty ahead of the U.S. presidential election.
