The fate of the dollar depends more on Trump, and cautious interest rate cut expectations limit the downside potential of the dollar

ChainCatcher news, according to Jinshi reports, Monex Europe analysts stated in a report that given the cautious expectations for interest rate cuts by the Federal Reserve, the dollar has little room to continue its recent decline. Swap rates reflect an expected 1.5 rate cuts this year, but considering sticky inflation, the Fed's rate cuts may be smaller. A significant depreciation of the dollar would require "a fundamental reassessment of the uniqueness of U.S. economic growth or a perfect anti-inflation phenomenon," but both scenarios are unlikely to occur in the near term.

However, the possibility of a significant rebound for the dollar this week is also low. The Federal Reserve's meeting minutes released on Wednesday may seem somewhat outdated, so the fate of the dollar will depend more on the unpredictable Trump.