The US dollar slightly rises, market rate cut expectations may be excessive

Mars Finance reports that, according to Jintou, the US dollar has risen slightly for the second consecutive trading day, completely ignoring market expectations of about three rate cuts by the Federal Reserve this year. The options market shows that recent bearish sentiment for the dollar has eased, with the front-end risk reversal indicator dropping to its lowest negative level in nearly a month. Some strategists believe that the rate cut expectations are excessive and may exceed what the data justifies, increasing the risk of a dollar rebound. Elias Haddad, Global Head of Market Strategy at Brown Brothers Harriman, stated that the economy is performing well and inflation remains above the Federal Reserve’s 2% target.