DBS Bank: The Federal Reserve should keep the door open for interest rate cuts at the July FOMC meeting

ChainCatcher news, DBS Bank's senior foreign exchange strategist Philip Wee pointed out that although the futures market sees a probability of over 100% for a Federal Reserve rate cut in September, the twists and turns of the U.S. presidential election and the unwinding of yen carry trades have clouded the outlook for the dollar. Additionally, against the backdrop of a tech stock sell-off, the yen and Swiss franc have become safe-haven currencies. At the July FOMC meeting, the Federal Reserve should keep the door open for a rate cut but avoid supporting market bets on a September cut. After the U.S. unemployment rate data on August 2 and the CPI data on August 14, the Federal Reserve may provide guidance on timing at the Jackson Hole symposium.