BBH: The Fed's rate cut is expected to be lower than anticipated, which will support the dollar

ChainCatcher news, Brown Brothers Harriman & Co. (BBH) stated that the market has overreacted to the recent weak U.S. data, and the Federal Reserve may not be as aggressive in easing monetary policy as other central banks, which supports the dollar.

Senior Market Strategist Elias Haddad noted that overall data shows economic growth remains above trend levels, indicating that the market has again overestimated aggressive easing. He expects this week's U.S. economic data will prompt traders to reassess their bets on the Fed's easing policy.

He added, "This week's data should show that, contrary to the market's expectations of aggressive easing from the Fed, the U.S. economy is relatively healthy, and if a repricing occurs, the dollar is likely to rebound further." (Jin Ten)